SAP BUSINESS PLANNING AND CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER, POWERED BY HANA STARTER KIT FOR IFRS, SP5 Configuration Design Document
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Table of Contents A. COMMON DESIGN PRINCIPLES... 7 1. General Reporting Principles... 7 1.1. Reporting Cycle... 7 1.2. Reporting Indicators... 9 1.3. Sign Convention... 10 2. Consolidation Principles... 11 2.1. Consolidation Type... 11 2.2. Consolidation Methods and Rates... 11 2.3. Foreign Currency Conversion... 12 3. Intercompany Reconciliation... 13 3.1. Example of the Reconciliation Process for the Actual version... 14 3.2. Configuration Principles... 14 3.3. Reconciliation reports... 15 4. Manual Journal Entries... 16 4.1. Audit IDs... 16 4.2. Account Total and Interco Breakdown... 16 5. Segment Reporting... 17 6. Working Languages... 17 7. Business Workflows and Security... 17 7.1. Security by Dimension... 17 7.2. Teams... 18 7.3. Workflow Management... 18 7.4. Security Settings by Team of Users... 19 B. A ACTUAL... 20 1. Dimensions and Properties... 20 1.1. Accounts... 20 1.2. Flows... 20 2. Logic Scripts... 21 2.1. Default Script... 21 2.2. Manual Journal Entry Script... 21 2.3. Consolidation Script... 21 2.4. ICMatching Scripts... 22 3. Business Rules... 22 3.1. General Principles... 22 3.2. Currency Translation Rules... 24 3.3. Eliminations and Adjustments Rules... 25 3.4. Account Based Calculation Rules... 34 4. Controls... 36 4.1. Set of Controls for Actual... 36 5. Reports... 37 5.1. Input Forms... 37 5.2. Reports... 39 6. Business Process Flows... 41 7. Integration with ERP... 43 7.1. Transactional data flow... 43 7.2. Transformation and conversion files... 43 7.3. Transactional data load... 45 C. BA - ANNUAL BUDGET... 46 1. Overview of the Process... 46 2. Dimensions and Properties... 47 2.1. Unified Chart of Accounts... 47 2.2. Account Properties... 47 3
3. Logic Scripts... 47 3.1. BA_YTD Script... 47 3.2. BA_Consolidate Script... 48 3.3. Default Script... 48 3.4. ICMatching Scripts... 48 3.5. Associated Package... 48 4. Business Rules... 48 4.1. Currency Translation Rules... 48 4.2. Eliminations and Adjustments Rules... 49 5. Controls... 54 6. Reports... 55 6.1. Input Forms... 55 6.2. Reports... 61 7. Business Process Flows... 66 7.1. BPF for Data Entry... 66 7.2. BPF for Central tasks... 67 D. BM - MONTHLY BUDGET... 68 1. Overview of the Process... 68 1.1. Year-To-Date Approach... 68 1.2. Periodic Approach... 69 2. Accounts Properties... 69 3. Logic Scripts... 69 3.1. Year-To-Date Approach... 69 3.2. Periodic Approach... 70 3.3. Associated Package... 72 4. Business Rules... 73 5. Controls... 73 5.1. Year-To-Date Approach... 73 5.2. Periodic Approach... 73 6. Reports... 74 6.1. Input Forms... 74 6.2. Reports... 85 7. Business Process Flows... 85 E. F09 SEPTEMBER FORECAST... 86 1. Overview of the process... 86 1.1. Year-To-Date approach... 86 1.2. Periodic approach... 87 2. Specific Accounts properties... 87 3. Logic Scripts... 87 3.1. Year-To-Date Approach... 87 3.2. Periodic Approach... 88 3.3. Associated Package... 90 4. Business Rules... 90 5. Controls... 90 5.1. Year-To-Date Approach... 90 5.2. Periodic Approach... 91 6. Reports... 91 6.1. Input Forms... 91 6.2. Reports... 101 7. Business Process Flows... 102 F. BM_AR - MONTHLY BUDGET AT ACTUAL RATE... 103 1. Overview of the process... 103 2. Logic Scripts... 103 2.1. BM_AR Consolidate Logic Script... 103 2.2. Associated Package... 103 4
3. Business Process Flows... 103 G. APPENDIX... 104 1. Input form - Example of F15-Net Variation Control... 104 2. Example of INPUTFLOWS Property Values... 104 3. CONSOLIDATION.lgf Logic Script... 105 4. Default.lgf Logic Script... 106 5. Journal.lgf Logic Script... 107 6. CopyOpening.lgf Logic Script... 108 7. BA_YTD Logic Script... 109 8. BM_YTD Logic Script... 110 9. BM_PER Logic Script... 111 10. BM_PER_TO_YTD Logic Script... 112 11. F09_Consolidate Logic Script... 117 12. F09TEC1_Consolidate Logic Script... 118 13. F09_PER Logic Script... 121 14. F09_Q4_FROM_BM Logic Script... 125 15. F09_PER_TO_YTD Logic Script... 126 16. BM_AR_Consolidate Logic Script... 131 17. PUSH_TO_ICMatching Logic Script... 132 18. CONVERSION_ICDATA Logic Script... 133 19. Carry Forward Rule... 134 20. Naming Convention for Method-based Multipliers... 135 5
Foreword This document describes how the SAP BusinessObjects Planning and Consolidation 10.0 starter kit for IFRS, SP5 on SAP Netweaver powered by HANA was designed. The SAP Planning and Consolidation starter kit for IFRS is created to deliver business logic on top of a unified Corporate Reporting application including Legal consolidation, Budget and Forecast, using both product and functional best practices. This pre-configuration assists you in setting up your statutory consolidation application in order to adhere to IFRS while accelerating and securing the implementation project. It offers you also a set of versions to manage projected data. The contents provided in the starter kit consist of reports, controls and rules for performing, validating and publishing: a legal consolidation in accordance with IFRS a corporate budget (annual and monthly) with reports comparing monthly Actual data with budgeted data for the Income Statement quarterly Actual data with projected data for the Statement of Cash Flows a corporate forecast: update of the initial monthly budget at the end of September 6
A. COMMON DESIGN PRINCIPLES 1. General Reporting Principles 1.1. Reporting Cycle The starter kit for IFRS is designed to support a full consolidation scenario for actual, budget and forecast data. The reporting cycle encompasses preparatory tasks, data entry tasks, consolidation tasks, and data retrieval through a library of reports. 1.1.1. Models Model Name Use Data Entry Mode Consolidation models CONSOLIDATION Reference Financial data Year-To-Date Financial models PERIODICENTRY Budget/Forecast data entry Periodic ICMATCHING Intercompany Reconciliation Year-To-Date Non Reporting models OWNERSHIP Consolidation Scopes: methods and consolidation rates by Entity Year-To-Date RATES Currency Translation Rates Year-To-Date 1.1.2. Dimensions Dimension Type Use Conso Per. IC. Own. Rates Version C-Version Reporting type / cycle: Actual, Budget, etc. X X X X X Time T-Time Time period X X X X X Entity E-Entity Reporting entity / (Legal/Management unit) X X X X Currency R-Currency Consolidation Currency X X X Account A-Account Financial and Statistical accounts X X Flow S-Subtable Positions (Opening/Closing) and detail of movements X X Audit Trail D-Audit Business origin of the data X X 7
Dimension Type Use Conso Per. IC. Own. Rates Interco I-Interco Transaction Partner or held company in the group X X X X Scope G-Group Consolidation perimeter X X ICAccount A-Account Account for IC matching X ICAuditID D-Audit Audit ID for IC matching X OwnAccount A-Account Ownership account X InputCurrency R-Currency Input currency X FXRatentity E-Entity Rate per entity X FXRate A-Account Rate ID X The starter kit provides the following versions: Dimension Description Use ACTUAL Actual from GL Statutory Consolidation BA Annual Budget Next year budget on a yearly basis BM BM_AR F09 F09TEC1 F09TEC2 Monthly Budget Monthly Budget at Actual Exchange Rates September Forecast September Forecast 1 (Estimate to complete) September Forecast 2 (Aggregate Actual + Fcst 1) TEST Tests Unitary tests Next year budget on a monthly basis for the net income and on a quarterly basis for the statement of cash flows Monthly Budget converted at Actual conversion rates Update of the initial monthly budget at the end of September. Data entered from January to December is consolidated (option 1) Update of the initial monthly budget at the end of September. Data entered from October to December is consolidated and then aggregated to consolidated data of Actual at the End of September (option 2) Technical (used in logic script for option 2) 8
1.2. Reporting Indicators 1.2.1. Reference Indicators 1.2.1.1. Chart of Accounts The chart of accounts is built in a way that makes it possible to map accounts with IFRS taxonomy items. Reference indicators include balance sheet (BS) accounts, income statement (IS) accounts, cash flow statement (SCF) accounts, comprehensive income statement (SCI) accounts and changes in equity statement (SCE) accounts. The Statement of Financial Position (SFP) - or Balance Sheet - distinguishes between the following items: Non-current / current items 1 Gross values / depreciation and impairment / net values The Income Statement (IS) is disclosed by function and composed of the following blocks of accounts: Operating profit Financial result Tax (Current and deferred) Profit (loss) from discontinued operations The Statement of cash flows discloses cash effects from operating, investing and financing activities as required by the IAS 7. The Statement of Comprehensive Income details Net Income and other comprehensive income The Statement of Changes in Equity details the movement in equity accounts, including opening balances 1.2.1.1.1. Structure of the Chart of Accounts The chart of accounts is organized into hierarchies. Accounts are always included in a parent member account by populating the PARENTH1 field in the ACCOUNT dimension. The following hierarchies are defined: Balance sheet: includes Asset accounts (Axxxx), Equity accounts (Exxxx) and Liability accounts (Lxxxx) Income Statement: includes all P&L accounts (Pxxxx) Statement of cash flows: includes all SCF accounts (SCFxxxx) Statement of Comprehensive Income: includes al SCI accounts Statement of Changes in Equity: includes all SCE accounts 1.2.1.1.2. Codification The codification principle allows the user to do the following: identify the account type: o A = Assets o E = Equity o P = Profit and Loss o SCF= Statement of Cash Flows o SCI = Statement of Comprehensive Income o SCE = Statement of Changes in Equity identify the subtype (for balance sheet accounts, the second digit 1 = Non-current item and 2 = Current item) sort accounts in logical order in reports notably in the balance reports (assets base members, equity and liabilities base members) In addition, for total accounts, the suffix T allows the user to distinguish between total accounts and leaf-level accounts. 1 In accordance with IAS1 Financial Statements 9
1.2.1.2. Flows The FLOW Dimension is mainly used for the Actual version. It allows detailing the value change between the opening balance (F00) and the closing balance (F99) for balance sheet accounts. All flows, excluding F99, are included in a parent member Closing-Calculated (END) in order to: Easily check that the sum of the opening balance and the period movements equal the closing position in reports (END = F99) Dynamically select the opening flow and the movement flows in reports. For Income Statement and Cash flow accounts (Actual, Budget and Forecast), data is identified on a single flow F10 Net Profit (Loss) for the period. (This corresponds with the flow value used to post Income into Equity). Cash Flow and Comprehensive Income accounts use the single closing flow F99; and Changes in Equity accounts use a dedicated set of flows ( T flows) which distinguish the type of equity affected in that statement. 1.2.1.3. Local Audit IDs Reported data is consolidated according to IFRS. Local data can be collected following IFRS, or in local GAAP, and subsequently adjusted to IFRS in input forms. Local data is stored on the INPUT AuditID (audit-type dimension). Subsequent local adjustments in input forms are stored on the LOCAL_ADJ AuditID. The Input forms for Balance Sheet and Profit and Loss are created to dynamically include all members assigned to the parent member ALL_INPUT in the form. In the Starter Kit, this means that the Input form includes a column for both the INPUT AuditID and the LOCAL_ADJ AuditID, within the same worksheet. Opening (F00) and closing (F99) flow values are also available for input. The Input forms for Intercompany and Balance Sheet by Flow allow the user to choose an AuditID from the Context setting for use in the specific instance. Thanks to a specific Data Access Profile, (named Entry Level ) only Input AuditIDs (base members of ALL_INPUT ) can be used by local end users; moreover, in the Context Default settings, the input AuditID is pre-defined as INPUT for any Web forms. It is therefore possible to dynamically enhance the list of local AuditIDs available in input forms by assigning the same property value and hierarchical node to the new AuditID(s). 1.3. Sign Convention In order to fully leverage the software s data storage engine as well as the calculation engine of total accounts, values for closing balances are entered as positive amounts for all account types. Assets Gross values Amortization & Equity & Liabilities Depreciation Increase Decrease Increase Decrease Increase Decrease Entry + - + - + - Display 100 (100) 100 (100) 100 (100) The ACCOUNT dimension is defined with the ACCTYPE property. Thanks to this property, values are automatically recorded with the appropriate sign for the account. 10
Accounts are defined with the following ACCTYPE values: AST: Asset accounts. Default sign is positive (debit). LEQ: Liability and equity accounts. Default sign is negative (credit) INC: Income and SCF accounts. Default sign is negative (credit) EXP: Expense accounts. Default sign is positive (debit) To calculate values for display on parent members (total accounts), the ACCTYPE property is also taken into account. The calculated value will be displayed following the ACCTYPE property. 2. Consolidation Principles 2.1. Consolidation Type The Starter Kit follows the direct consolidation approach, where Entities are attached directly to the main parent company of the consolidation perimeter. In the CONSOLIDATION model, consolidation flows (such as F02 -Change in consolidation method, F92 - Change in consolidation rate) are not available in input forms. NOTE: Sub-scope Management The consolidation engine natively handles sub-consolidations; that is, consolidations of groups hierarchically organized into structures and sub-structures. The prerequisites are as follows: Consolidation ownership structure organized hierarchically via the PARENT_GROUP property of the SCOPE dimension Entities attached to sub-structures or directly to the top structure in the Ownership Manager. The following options must be activated so that the aggregated amounts of possible sub-consolidations are stored in the fact table: STORE_ENTITY property set to Y (Yes) ENTITY property set to a dedicated Entity ID which the aggregated value of the structures and substructures should be recorded onto. 2.2. Consolidation Methods and Rates 2.2.1. General Principles The following consolidation methods are supported in the starter kit: Full method (purchase method) Equity method The consolidation process uses the following rates: Consolidation rate Ownership rate The consolidation perimeter is entered manually. The starter kit does not include any process for determining the consolidation method by entity automatically, nor calculating the consolidation rate and financial interest rate. 11
2.2.2. Ownership Model Consolidation methods and perimeter rates are stored in the OWNERSHIP Model. They are used to define the consolidation perimeter via the Ownership Manager. The list of available consolidation perimeters is maintained in the group-type dimension named Scope. 2.2.2.1. Rates The rates used correspond to the following ownership accounts (OWNACCOUNT) in the OWNERSHIP model: PCON Consolidation rate POWN Financial interest rate (group share) These rates are defined with the property IS_INPUT=Y. 2.2.2.2. Methods The consolidation methods are defined in relation to the OWNACCOUNT dimension, on the METHOD member. The different values are as follows: Description Holding (Main Parent) Method Code [Method ID=10] This method must be assigned to the consolidating company for which no equity elimination is booked. Full (Purchase method) [Method ID = 20] Equity [Method ID = 30] Note: Other values also exist in order to deal with scope changes. 2.2.2.3. Equity Method Equity method postings are handled within most rules along with the full and holding methods; exceptions exist for Equity method Investments, Dividends and Net Income, which are all discussed in the Eliminations and Adjustments rules chapter of this document. The INTEGRATION consolidation rule, in conjunction with an Equity method assignment to a relevant Entity, is defined make sure that only Full and Holding method entities are included in group reporting. This rule is also discussed later in the document. 2.3. Foreign Currency Conversion 2.3.1. General Principles Income Statement Accounts are converted using the average rate of the reporting period. Balance Sheet (Statement of Financial Position) Most of the accounts (except equity and investments accounts) are converted using the period-end rate at closing position Movements are translated using average rate. Investments and equity accounts are maintained at their historical acquisition value (currency translation differences are recorded in a dedicated account in the reserves, account 24161) As some transaction values need to be converted at a specific rate (such as dividends distribution and the balance sheet position of incoming units), the definition of currency rate per Entity is required. 12
2.3.2. Rates Definition and Input Forms The following FXRATE dimension members have been defined, and associated values per period must be entered in the RATES Model: AVG: average rate END: closing rate DIV: dividends rate INC: incoming rate The Starter Kit provides 1 input form. This is reached from the Start page of the Web Client, in the PUBLIC folder of the Library. This input form, Rates-input by currency/entity, is based on the FXRATENTITY dimension: The form displays each INPUTCURRENCY member, by FXRATENTITY member (with the member GLOBAL listed first; this represents the default rate for the particular currency) The starter kit also provides 3 input forms located in the schedule library of the Rates model: Actual rate and BM_AR (Monthly budget at actual exchange rate) rate input Monthly budget rate input Forecast and Annual Budget input rate These input forms are all based on the RATEENTITY dimension, which displays: GLOBAL member, against which the default rates by input currency must be input; it is therefore initialized in the context of the input form. Members that correspond to entities to which a specific rate must be applied and which therefore have identical identifiers (IDs). These members can be inserted as appropriate by the central user in the input form. The currency conversion rules apply the specific rate for one entity if such a rate exists. If not, it will default to the general currency rate input on the GLOBAL member. 2.3.3. Reminder: Entering Specific Rates by Entity In order for the conversion engine to apply specific rates by Entity, it is necessary to input the specific rate for the Entity (FXRATENTITY dimension), not only against its respective local currency (INPUTCURRENCY dimension), but also against the consolidation currency. This is because the conversion engine will not refer to the default rate stored on the GLOBAL FXRATENTITY member in the case of a specific rate for one Entity. 3. Intercompany Reconciliation Accounts for which a breakdown by Intercompany is entered are reconciled: Reciprocal accounts of the Balance sheet (Actual) Reciprocal accounts of the Income statement (All versions) Reciprocal accounts of the Statement of Cash Flows (Budget, Forecast) Amounts are reconciled based on converted amounts. Consequently no input in transaction currency is required at the local level. A dedicated ICMatching Model is created for this process. Creating a dedicated model also contributes to optimizing the system performance by separating the calculations and processes from the CONSOLIDATION Model. This model is available for Actual, Budget and Forecast data. 13
3.1. Example of the Reconciliation Process for the Actual version 3.2. Configuration Principles 3.2.1. Dimensions The ICAccount dimension is created to benefit from the following advantages from a user-friendliness and system-performance perspective: Limit the list of members only to accounts with intercompany breakdown Define a 2-level hierarchy distinct from the hierarchical chart of accounts. On one hand, this hierarchy will be used to group accounts to be reconciled together in the reconciliation reports. On the second hand, it is not necessary to calculate the financial total accounts for the reconciliation process. The ICAuditID dimension is created to: Limit the list of members to the audit IDs used to enter IC declaration locally (INPUT, INPUT11) or centrally (INPUT91, ADJ_LC_M, FVA11) Add specific audit IDs (namely Debit1, Credit1, Debit2, Credit2) to duplicate and invert the entity s and the partner s IDs information in order to allow each entity to view the amounts that other entities have 14
declared against it. This is necessary during the reconciliation process, due to the data access definition. A property IC_ORIGINE takes the value I for all audit IDs used originally to declare the intercompany operations, and specific values D1, C1, D2, C2 used by the script ICDATA to generate the data required for reconciliation. 3.2.2. Logic Scripts The logic scripts used during the IC process are the following: The script PushToICMatching, defined in the Consolidation Model, is used to transfer data to reconcile from the Consolidation Model to the ICMatching Model. It is triggered through the 6_1 ICMatching preparatory package. The script ICData is defined in the ICMatching Model. It is triggered via the package ICDATA. The purpose is to run the CURR_CONVERSION program in order to convert local data and the ICDATA program that populates the following audit IDs: TOTAL1 Difference at seller TOTAL2 Difference at buyer Debit 1: My Assets / Income Credit 1: Their Liabilities / Expenses Debit 2: Their Assets / Income Credit 2: My Liabilities / Expenses 3.3. Reconciliation reports Example: Local data transferred from the CONSOLIDATION application and converted via the CURR_CONVERSION program in EUR Entity Interco Audit ID ICAccount Flow LC EUR Acctype S004 I_S000 INPUT - Entity's input P1210 - Other income PL99 1000 754 INC S000 I_S004 INPUT - Entity's input P1410 - Administrative expenses PL99 (754) (754) EXP Rows generated on new audit Ids via the program ICDATA Entity Interco Audit ID ICAccount Flow LC EUR Acctype S004 I_S000 Debit1 - My assets / income P1210 - Other income PL99 1000 754 INC S004 can retrieve S004 I_S000 Credit1 - Their liabilities / expenses P1410 - Administrative expenses PL99 (754) (754) EXP mismatching vs S000 S004 I_S000 Total1 - Difference at seller REC-P15 - Other operating accounts PL99 0 INC Entity Interco Audit ID ICAccount Flow LC EUR Acctype S000 I_S004 Debit2 - Their assets / income P1210 - Other income PL99 1000 754 INC S000 can retrieve S000 I_S004 Credit2 - My liabilities / expenses P1410 - Administrative expenses PL99 (754) (754) EXP mismatching vs S004 S000 I_S004 Total2 - Difference at buyer REC-P15 - Other operating accounts PL99 0 INC 15
This structure of the information enables you to retrieve: Discrepancies at a group level by seller for subtotals Discrepancies at group level sorted by seller when retrieving Debit1, Credit1 and Total1 in Local Currency and Group currency 4. Manual Journal Entries Several elimination entries or consolidation entries are booked via manual journal entries in the starter kit: elimination of internal provisions, elimination of internal gain / loss on disposal of assets, reclassification of the incoming position of Other Comprehensive Income components in retained earnings for incoming entities. Moreover it is possible to adjust the automatic entries with manual journal entries if needed. 4.1. Audit IDs Manual journal entries can be manually booked using predefined audit IDs with property DATASRC_TYPE = M. Some audit IDs have been created to allow the consolidation manager to book entries which are not automated in the starter kit. Other audit IDs are also available to complement automatic entries. For instance, the manual journal entry-type audit IDs DIV11 and DIV21 are available in addition to the automatic audit IDs DIV10 and DIV20. 4.2. Account Total and Interco Breakdown If a manual journal entry should impact both the account total and one or several group partners, one journal row must be defined to record the impact on I_NONE in addition to the journal row(s) recording the impact on the group partner(s). 16
5. Segment Reporting Income Statement, Assets and Liabilities by Segment Segment reporting is built by entity aggregation, which implies that each entity belongs to only one segment. The scenario where a legal company belongs to several segments is supported by splitting legal companies into operating entities which report IS items and operating assets and liabilities, and non-operating entities which report non-operating items such as equity, tax and investments. In terms of data entry, one BPF instance is created per entity, i.e. business unit. In order to balance BS and IS for all entities (operating and non-operating) that compose a company, two balancing accounts have been defined: - L26BU-Balancing account - Balance sheet - P22BU-Balancing account - Income statement Example: Non Operating Operating Segment A Operating Segment B Total company (no intra elimination) Assets Fixed assets 500 100 200 800 Cash 200 200 700 100 200 1000 Equity & Liabilities 0 Equity 300 300 Net Income 40 60 100 Net Income-Balancing 100-40 -60 0 Debts 100 400 100 600 B/S-Balancing 200-300 100 0 700 100 200 1000 Income Statement 0 Net Income of the period 40 60 100 Warning: Intragroup/Intergroup intercompany eliminations: In the starter kit, segment reporting is built by entity aggregation. The starter kit does not provide intragroup/intergroup intercompany elimination feature. 6. Working Languages The starter kit handles English as unique language. 7. Business Workflows and Security 7.1. Security by Dimension User can only enter data on their own entity. The security allows differentiating data entry and consolidation manager profiles. Secured dimensions are set up as follows: - Consolidation model: ENTITY, AUDIT_TRAIL, SCOPE - ICMatching model: ENTITY - Ownership model: ENTITY, SCOPE 17
- Rates model: VERSION - PeriodicEntry model: Entity, AuditID, Version - In three of the models, the dimensions that stand for Entity drive the dimensional security (the RATES model has only VERSION as a secured dimension). AUDIT_TRAIL has been added for the CONSOLIDATION model, for the Entry Level data access profile, which requires a more restricted access. SCOPE has been added to the CONSOLIDATION and OWNERSHIP models, again to support more restricted access. 7.2. Teams In addition to the built-in Admin team, 3 teams that reflect business roles have been defined in the starter kit: Consolidation managers team Data entry users team Report viewers team Depending on the team to which a user is affected, an entire security configuration applies automatically. 7.3. Workflow Management A user managing a group of reporting entities can check if the data entry related tasks have been performed and assign the appropriate level of approbation status: started, submitted, rejected, and approved. 7.3.1. Entity specific properties Even though users that are registered as Owner in the Entity dimension are likely to be changed after the starter kit is restored in a new environment, the way they are hierarchically organized illustrates how Work Status and BPF workflows should be designed with the starter kit. This recommended configuration assigns the same user to both the roles of Work Status manager (Owner of a parent entity (1)) and the role of BPF approver (reviewer of a child entity (2)). Example of the Entity dimension: ID DESCRIPTION OWNER REVIEWER ALL_ENTITY Total All Entities CONSOMNGR EZONE Euro Zone CONSOMNGR (1) NA E0 Entity 0 LOCALUSER CONSOMNGR (2) E1 Entity 1 LOCALUSER CONSOMNGR CONSOMNGR belongs to the CONSOLIDATION MNGR Team LOCAL USER belongs to the DATA ENTRY USERS team 7.3.2. Business Process Flow (BPF) Business process flows are defined to manage each version reporting cycle. They are organized around the following criteria: Central tasks vs. local tasks YTD vs. Periodic data entry (Budget, Forecast) Warning: Mirroring roles (workstatus manager=bpf approver): This mirroring structure should be replicated with actual users as part of the implementation project to keep BPFs and Workflows settings both consistent and quickly usable. Indeed, the starter kit and especially the BPFs are not configured for distinct reviewers/approvers. (e.g. CONSOMNGR is reviewer of E0 but the Work Status manager of E0 is LOCALUSER ). 18
7.3.3. Work Status In terms of Work status, four levels have been defined. By default, the data is always set to the Started status. Once the data is entered and controlled, both the owner and the manager are allowed to change the work status to Submitted. From this point on, the manager only can change data using journals or input forms. When the status is set to Approved, only the manager can set the work status back to Rejected or reset it to Started if necessary. As long as the status is Approved, no data can be modified using input forms, but Journals and Data Manager are still possible for the Manager. For all work status, creation or modification of comments and documents is possible. Work state Data Manager Journals Manual entry Comments Documents Controlled By Started All All All All All Both Submitted Manager Manager Manager All All Both Rejected Owner Owner Owner All All Both Approved Manager Manager Locked All All Manager 7.4. Security Settings by Team of Users Team Task Profiles Local Users Entry Tasks Key settings: - Only view rights in Web Admin - Only view rights on Journals - Access to Reports and Input Forms allowed - Run controls and packages enabled Consolidation Managers Conso Tasks Key settings: All rights but only view rights on Model administration and system Data viewers Data View Tasks Key settings: Can run documents using EPM client and Web reports. (Use of BPF can be added in the security settings) ADMIN ALLTASKS Key settings: All tasks allowed (latest tasks from new product releases should be added manually in this profile) Team Data access profiles Local Users Entry Level READ & WRITE Consolidation model - ENTITY [ALL] - AUDITID:[ALL_INPUT] - SCOPE:[S_NONE] Consolidation Managers All Members READ & WRITE Consolidation model - ENTITY [ALL] - AUDITID [ALL] - SCOPE:[ALL] Data viewers ADMIN PeriodicEntry model - ENTITY [ALL] - AUDITID:[ALL_INPUT] - VERSION:[ALL] ICMatching - ENTITY [ALL] READ ONLY Ownership model - ENTITY [ALL] Rates model - RATEENTITY [ALL] PeriodicEntry model - ENTITY [ALL] - AUDITID [ALL] - VERSION:[ALL] ICMatching - ENTITY [ALL] Ownership model - ENTITY [ALL] Rates model - RATEENTITY[ALL] 19
B. A ACTUAL 1. Dimensions and Properties 1.1. Accounts Account properties used in the starter kit are listed below: Property ACCTYPE DIMLIST_FS ELIMACC INPUTFLOWS Specific use This built in BPC property is also used by the cash flow mapping. Used to calculate values for use in Business Rules used to populate SCF, SCI and SCE accounts Used to define the respective elimination account to be populated as counterpart of the journal entry Used in the input forms to highlight allowed flows GROUP ISINTERCO RATETYPE Used in the Logic Scripts to distinguish between Balance Sheet accounts (BSA), Income Statement accounts (ISA). Used in input forms to display the IC indicator (for accounts for which intercompany values are possible) Used in the currency conversion rules STYLE Used to define formatting for each type of accounts in the hierarchy TYPELIM Used to select accounts in Business Rules 1.2. Flows In order to be able to calculate the Statement of Cash Flows items and to produce the Statement of Changes in Equity, changes in the BS items are captured or calculated as follows: For current assets and liabilities (Gross value), the net variation is calculated and displayed in input forms For other BS accounts, a detailed analysis of movements is required Specific operations are identified separately for all BS accounts: Reclassification, Changes in accounting policies, Internal mergers (transfer of BS accounts from the acquired to the acquiring company in case of an internal merger) Opening balances are automatically calculated from the closing balance of the previous year. The following common flows are valid for all BS accounts: Positions: F00-Opening, F99-Closing Flows for current transactions: F15 - net variation, F20 - increase, F25 - allowance on amortizations/depreciations/impairments/provisions, F30 decrease, F35 - write-back of impairments/provisions, F40 - subscription to capital increase, F55 - fair value adjustment. Specific flows (except for some equity accounts): F50-Reclassification, F05-Change in accounting policies. Additional relevant flows depend on the account. This link is defined in the INPUTFLOWS account property (See Appendix G.2). This property is used to stripe cells that correspond to inconsistent account-flow crossovers in input forms. 20
For P&L accounts, only flow F10- Net profit (loss) is used. Flow properties used in the starter kit are listed below: Property DIMLIST_CALC DIMLIST_CONV FLOW_TYPE Specific use Used to indicate whether a flow is a movement or balance flow, for use in calculating the F15-Variation flow during data entry Used to indicate the Rate Type to be used for the flow in currency conversion Used by the consolidation engine to select and process carry over and scope variation flows 2. Logic Scripts All the following logic scripts used for Actual are stored in the Consolidation model. 2.1. Default Script The real time calculations triggered by the Default.lgf logic script as and when data is input in forms or imported are the following: Calculation of the income of the period in the balance sheet (E1610 / F10) Calculation of the net variation flow (F15) For all BS accounts, the net variation (i.e. closing balance [opening balance + specific flows]) is calculated in flow F15-Variation. (See Appendix G.4). For non-current accounts, the net variation must be distributed on relevant flows in the corresponding input form. When saving new values, the variation flow (F15) is calculated again and must be zero in the form. The controls are performed during the data validation via specific controls rules. The flow F15 is then highlighted in input forms (see Appendix G.1). For current accounts (excluding provision and allowance accounts) the net variation amount is not distributed on flows and remains on the net variation flow (F15). The detailed script logic is available in appendix (see Appendix G.4). 2.2. Manual Journal Entry Script The real time calculations triggered by the Journal.lgf logic script when a manual journal entry is booked are the following: Impact from P&L to BS Equity (F10) Carry-over of flows to the closing balance (F99) The detailed logic script is available in appendix (see Appendix G.5). 2.3. Consolidation Script The first part of this script corresponds to standard conversion and consolidation programs. The VERSION, the SCOPE and the TIME are configured with the syntax %_SET% so that the user can select the appropriate members when running the associated package (namely Consolidation stored in the Consolidation Model > Financial processes package group). In the second part, the script refers to the Account-based Calculations rules to be triggered in order to automatically calculate the consolidated Statement of Cash Flows, Statement of Comprehensive Income, and Statement of Changes in Equity. 21
The detailed logic script is available (See Appendix G.3). 2.4. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 3. Business Rules 3.1. General Principles 3.1.1. Balance Carry Forward The starter kit allows the user to populate the opening balance of the current period from the prior year-end closing balance in order to ensure the flow consistency over time periods. This applies to the various amount types: Input data, manual journal entries (MJE) and automatic journal entries (AJE). Opening balances of the current year result from the carry forward of closing balances from the previous year. This calculation is defined and executed in the following steps: Balance Carry Forward of Data Input and Manual Entries: For all audit IDs with the property DATASRC_TYPE = I (for data input) and M (for Manual Entries), opening balances are calculated using the data manager package CopyOpening with the Carry Forward Rules defined as follow: Source account: TBS (all BS accounts) and technical accounts (X ) Source flow: F99-Closing balance Destination flow: F00-Opening balance Audit type: A-All (meaning input and manual, but not automatic ) Calculation of the Consolidated Opening Balances (Automatic Entries): The carry forward rules do not apply to automatic entries (audit IDs with property DATASRC_TYPE = A). Instead, the consolidation engine calculates the consolidated opening balances (flow F00) of the current year by copying the closing balance (flow F99) of the previous year. 3.1.2. Flow-Based Consolidation For manual and automatic journal entries, the closing position is always calculated from movements. This contributes to the consistency of the closing position and movements over time periods, notably for the calculation accuracy of the Statement of Cash Flows and the Statement of Changes in Equity. Automatic and manual journal entries must be booked on movement flows. The impact on the closing balance (flow F99) is calculated automatically. This calculation is defined in one of three places: In the elimination and automatic adjustments rules ( Force closing option) for all automatic entries that impact BS movement flows In the journal.lgf logic script for manual journal entries (see Appendix G.5) In the copyopening.lgf logic script for manual journal entries from the previous year (see Appendix G.6) 22
3.1.3. Balanced Entries In the consolidation, manual and automatic journal entries are booked by ENTITY according to a contributive approach, not booked in adjustment or elimination entities. This is because it must be possible to retrieve the net contribution to the group consolidated figures by Entity. This principle also facilitates the audit trail since the origin Entity of the elimination is identified. Manual and automatic journal entries must be balanced by Entity and AuditID. Elimination accounts are created in the Balance Sheet and the Income Statement. They are used as offsetting accounts to balance elimination postings by Entity (e.g. the Entity remains in balance). Automatic journal entries will populate these elimination accounts as defined in the Elimination and Adjustment Rules. It is also possible to use these elimination accounts for manual entries. 3.1.4. Using the Breakdown by Partner Intercompany accounts are collected by Group partner, so that it is possible to use the partners position in the consolidation scope, along with the elimination rules, to trigger the eliminations accordingly. The breakdown by partner is maintained in elimination entries for audit trail purposes, making it possible to explain the total amount eliminated. The accounts for which intercompany values are possible (property ISINTERCO = IC or ICM ) are used as follow: Company data is reported globally (Interco = I_NONE) and broken down by partner in a dedicated input form Elimination entries are booked both by partner and globally (Interco = I_NONE). This is done by using the Force intco member option in the elimination and adjustments rules As a consequence, the detail of eliminations by partner is available for audit trail purposes. This logic is illustrated in the table below. Automatic adjustment rules are based on Method-based Multiplier rules in which the Interco method, in addition to the entity method, is chosen. As a consequence, no elimination will occur when the INTERCO member corresponds to a non-consolidated entity. Elimination by partner and on the grand total Comment ENTITY ACCOUNT FLOW INTERCO AUDITID. Amount Account total -Input data E0 Interest Income F10 I_NONE INPUT 50 Partner breakdown (1) -Input data E0 Interest Income F10 I2 INPUT 40 Partner breakdown (2) -Input data E0 Interest Income F10 I3 INPUT 10 Elimination by partner E0 Interest Income F10 I2 ADJ_ELIM_AUTO -40 Elimination by partner E0 Interest Income F10 I3 ADJ_ELIM_AUTO -10 Total Elimination E0 Interest Income F10 I_NONE ADJ_ELIM_AUTO -50 3.1.5. Analysis of Changes from Local to Consolidated Value The preparation and validation of consolidated figures, including analysis of changes from local to consolidated values, is facilitated thanks to a business classification of all consolidation steps and calculations (manual entries, apportionments, automatic eliminations ). 23
A dedicated audit-type dimension called audit ID is defined to classify data from local to consolidated figures. This dimension is defined with a hierarchy in order to distinguish the different main transformation steps of amounts in the consolidation process and to retrieve these steps in reports. 3.1.6. Leveraging the Built-in Scope Change Calculation Effect of perimeter changes on consolidated statements must be disclosed on specific flows depending on the type of the scope change (incoming, rate or method change ). For Balance Sheet accounts, Elimination and Adjustment Rules based on the current perimeter rates (financial interest rate and consolidation rate) apply not only to movement flows but also to the opening balance F00. This is because the consolidation engine is able to automatically identify and calculate the effect due to changes in the perimeter by the difference between the carry forward of the automatic entry from the prior year-end period on the one hand, and the newly calculated automatic entry elimination for the opening balance F00 on the other hand. Example: December, Prior Current Time Period Year POWN 0.8 0.9 Audit IDs F99- Closing F00- Opening Scope variation* F99- Closing INPUT Input data 100 100 100 CONS_EQ Automatic adjustment based on POWN 80 80 10 90 The scope variation flow member populated by the consolidation engine depends on the status of the entity and/or the partner (Interco) in the consolidation perimeter: incoming, leaving, change in consolidation rate or change in consolidation method. 3.2. Currency Translation Rules 3.2.1. General Principles Currency Translation Differences For equity accounts, the currency difference resulting from the translation of movements at specific rate (historical, average, opening) is recorded in a dedicated equity account E1560 on flow F80-Foreign exchange gain/loss. For other BS accounts, the currency difference resulting from the translation of movements at average rate, and the translation of closing balance at closing rate, is recorded in the original account on flow F80-Foreign exchange gain/loss. Account selection The RATETYPE property of the ACCOUNT dimension is used to dynamically associate groups of accounts to identical conversion behaviors. The FLOW dimension DIMLIST_CONV property is leveraged in the currency conversion rules in order to dynamically associate groups of flows to one given conversion behavior, within one account set, associated with one RATETYPE property. 24
Flows Flows translated using the closing rate of the previous period Flows translated using the average rate Flows translated using the dividends Entity rate Flows translated using the incoming Entity rate DIMLIST_CONV property OPE AVG DIV INC Audit ID behavior The currency translation process applies only to AuditIDs identified by the Y value of the IS_CONVERTED property. Consequently this value has been assigned to AuditIDs intended for input and adjustments in the Starter Kit. 3.2.2. List of Rules Definition The Currency Translation Rules are configured as follows: Accounts Currency Translation Rule RATETYPE Property IS accounts Average rate (AVG) AVG BS accounts (except Equity and Closing balance: closing rate (CLO) CLO Investment) Movements: average rate (AVG) CTA calculation on flow F80 account by account Equity and Investment accounts Maintained at their historical value: opening balance is not changed (AS_IS formula), other movements are translated using their respective rate (AVG, DIV, CLO, OPECLO). The ForceClosing Option is used so that the converted closing position equals the sum of converted flows. CTA calculation on flow F80 of the currency conversion reserve account 24161. HIST Currency translation account (E1560) 3.3. Eliminations and Adjustments Rules The opening balance is maintained at the converted value of the prior year end (AS_IS formula) HIST The list of the Eliminations and Adjustments Rules of the Starter Kit and their purpose is presented in the table below: Rule ID Purpose Ref. DIVIDENDS Dividends elimination 3.3.2 DIVIDENDS2 Balancing F80 against net variation cash (conversion of dividends at a specific rate) 3.3.2 EM_INV Equity Method Investments 3.3.3 EM_INV_DIVIDENDS Equity Method Dividends 3.3.2 EM_INV_NETINCOME Equity Method Net Income 3.3.5 EQUITY Consolidation of Equity accounts 3.3.5 GOODWILL1 Goodwill (I_NONE value) 3.3.4 GOODWILL2 Goodwill (interco value) 3.3.4 ICELIM Intercompany elimination 3.3.1 INVESTMENTS Investments elimination 3.3.3 INTEGRATION Integration of Holding and Full methods 3.3.6 25
3.3.1. Reciprocal Account Eliminations Rule: ICELIM 3.3.1.1. Functional Requirements Intercompany reciprocal accounts are eliminated against dedicated elimination accounts (clearing accounts). As a consequence, these elimination accounts show the intercompany mismatch at group level. Intercompany amounts are eliminated between entities consolidated using full or proportional methods, weighted with the lowest consolidation rate between both companies. The elimination accounts are part of the account hierarchy and consequently included in consolidated statements. At group level, elimination accounts show the intercompany differences, resulting from a mismatch in the intercompany amount reported by entities At entity level, elimination accounts balance the elimination postings 3.3.1.2. Rule Configuration Account selection/destination Within the chart of accounts, only some accounts are open for recording intercompany transactions. However, these accounts are not dedicated solely to intercompany operations; transactions with third parties may also be recorded. Several groups of reciprocal accounts are defined. Balance Sheet: o Receivables and payables, non-current o Financial assets and liabilities, non-current o Receivables and payables, current o Financial assets and liabilities, current Income Statement: o Gross profit (Revenues / Cost of sales) o Operating profit (Other income / Other operating expenses) o Financial result (Interests and other financial income/expenses) To facilitate the maintenance of the chart of accounts and business rules, intercompany eliminations are defined using the following account dimension properties: Property ISINTERCO TYPELIM ELIMACC Purpose Used to show in input forms that one account can be used in the intercompany input form. This IC indicator is displayed in the Balance input form for P&L accounts, and in the flow analysis input forms for B/S accounts. Used to select accounts in the consolidation rules Example: The accounts Revenues and Cost of sales have the property TYPELIM = S_ICIS Used to define the respective elimination account to be populated as counterpart of the journal entry Example: The account P119B is defined in the property ELIMACC for the accounts Revenues and Cost of sales 26
Audit ID destination The ICELIM Eliminations and Adjustment rule records intercompany eliminations on the audit ID ELIM10. Method-based Multiplier Intercompany eliminations are performed using the 1_1 Actual_Consolidate Package, which triggers the Eliminations and Adjustments rules combined with the Method-based Multipliers. For intercompany eliminations, several Method-based Multipliers are defined: II10: consolidation methods for the ENTITY and INTERCO dimensions are: Holding (10), Full (20, 28) II18: rules applicable when either the Entity or the partner has been defined as divested during the year with method Full (28); triggers movement on FLOW dimension to F98 II19: rules applicable when either the Entity or the partner has been defined as divested last year end with method Full (29); triggers movement on FLOW dimension to F98 These consolidation rules are defined with consolidation formula which refers to the lowest rate between the entity s consolidation rate and the partner s consolidation rate at closing. Explanations regarding the naming convention of the Method-based multipliers are available in appendix G.20. Formula for the Lowest Consolidation Rate The formula used in the starter kit for returning the lowest consolidation rate between the Entity and the Intercompany defined in the consolidation perimeter is MIN(PCON,I_PCON). The corresponding processing rows of the ICELIM Elimination and Adjustment rules define the following eliminations: Source account CO_IC_BS CO_IC_IS CO_IC_ SALES CO_IC_ SALES Source flow All flow included in END F10-Net Income (loss) F10-Net Income (loss) F10-Net Income (loss) Dest. All Dest. group account account Dest. flow Multiplier Applies to CO_IC_BS PROP(ELIMACC) Same as II10 the source flow methods CO_IC_IS PROP(ELIMACC) Same as II10 the source flow methods CO_IC_ SALES 31121 Cost of Sales PROP(ELIMACC) PROP(ELIMACC) Same as the source flow Same as the source flow II10 II10 BS accounts Holding and Full IS accounts Holding and Full Revenue accounts Holding and Full methods Reverse value from above step, with Swap Entity/Interco designation 27
Automatic Interco Elimination: Example for Trade Receivables and Payables 2 SELLER Company (S) A2210 Trade receivables (Assets) L239B Elimination account Interco B 130 Interco B 130 Interco B 130 BUYER Company (B) BUYER L2310 Current trade payables (Liabilities) L239B Elimination account Interco S 120 Interco S 120 Interco S 120 Input amounts Elimination at the seller Elimination at the buyer 3.3.2. Elimination of Dividends Rules: DIVIDENDS, EM_INV_DIVIDENDS 3.3.2.1. Functional Requirements Dividends paid and received are automatically eliminated based on the receiver s declaration. The elimination journal entry is posted in the receiver s accounts (P&L and equity). The impact on reserves / net income is shared between the group and non-controlling interests, based on the ownership rate of the receiver company. NCI is moved from the dividends received account into an NCI account on the P&L. A manual adjustment journal entry can be posted if the declarations from the payer and the receiver do not match. 3.3.2.2. General Principles Dividends are eliminated based on the detail reported by the receiving company in the dividends received P&L account (P2140 / F10). Breakdowns by partner must be entered in order for eliminations to process; the Intercompany input form is used for this task. In the equity section of the Balance Sheet, dividends paid can be reported by the subsidiary on the Retained Earnings account E1610, on flow F06-Dividends. Again breakdowns by partner must be entered; the Intercompany input form is used for this task also. Any impact related to non-controlling interests is recorded by the DIVIDENDS Elimination and Adjustment Rule. Values for NCI are moved within the P&L prior to the elimination by partner(s). 2 To keep the example easy to understand, only the journal entry by group partner is shown ( and ). The automatic journal entry is also posted against the I_NONE member. 28
3.3.2.3. Foreign Currency Conversion On the payer s side, the flow F06 is converted using the dedicated rate type, DIV (see FXRATE dimension in the RATES model). This rate can be populated in the rate table, and should be equal to the payer s currency exchange rate at the date when the dividend was agreed by at the annual general meeting. Using this rate will make the reconciliation of dividends paid/received easier, especially when the receiver s reporting currency is the same as the consolidation currency. When payer s and receiver s currencies are different, flow F80 Currency translation adjustment is unbalanced: the difference is equal to dividend paid converted at DIV rate minus dividend received converted at the average rate. The DIVIDENDS2 Elimination and Adjustment Rule balances flow F80 against flow F15 - Net variation on account A2610 - Cash on hand. 3.3.2.4. Dividends for an Equity Method Entity EM_INV_DIVIDENDS: in case of an Equity Method entity, the Dividends Paid account is first apportioned by Group and NCI shares, in order that the DIVIDENDS rule will correctly offset any Group share of dividends received by the parent. The F06- Dividends flow value in account E1610- Retained Earnings is affected, thereby lowering the value available for elimination. 3.3.3. Elimination of Investments Rules: INVESTMENTS 3.3.3.1. Functional Requirements The internal investments in subsidiaries are automatically eliminated against equity during the consolidation. The Starter Kit supports the automatic calculation of non-controlling interests in the investments when the owned-entity is not 100% owned by the group. 3.3.3.2. Rule Configuration Investments in subsidiaries (account A1810-Investments in subsidiaries) are recorded, and detailed by owned entities, using the Interco dimension. The automatic elimination of group investments is triggered by the INVESTMENTS Elimination and Adjustment Rule. It is posted on a dedicated AuditID, INVESTMENTS- Elimination of investments. Distinguishing the Impact on Flows by Operation Type o Any purchase or disposal of investments is dealt with in the rule by specifically by selecting F20 and F30 respectively, and defining F00 as the destination flow. Flow F98 is impacted depending on whether the held entity leaves the scope. o For other flows the destination is identical to the source (F01, F02, F15, F50) o Processing rows are also defined on the opening flow F00 in order to calculate possible changes in the consolidation rates or financial interest rates. Balanced Entries at Both the Owner Company and the Held Company The elimination journal entry impacts both the owner and the held companies: o Owner company (parent): the investment values are eliminated against the elimination account A181B (owner company) at the ownership rate (POWN). o Held company (subsidiary): the rule for elimination of investments triggers an entry on the group retained earnings, against the elimination account A181B (held company). In case there are indirect 29
non-controlling interests in the owner company, the impact on the retained earnings is split between group and non-controlling interest, based on the group s share of the owner, and therefore calculated respectively with the POWN and 1-POWN formula used in the IS20, IS21 or IS23 Method-based Multipliers. 30
3.3.4. Goodwill (Interco Treatment) Rules: GOODWILL1, GOODWILL2 3.3.4.1. Functional Requirements Goodwill is booked in the local data, and as such is included in the INPUT AuditID when data is loaded. Intercompany breakdowns should be done as required for Goodwill as required; this may be done via the Input Form Intercompany, or included in Import files. Based on this information, an automatic journal entry impacts the goodwill (assets) against the equity at the subsidiary level. If needed, the impact on the equity is split between the group and non-controlling interests based on the group s share in the owner company. 3.3.4.2. Automatic Journal Entries Automatic journal entries are posted at the subsidiary using the CONS_EQ AuditID, triggered by Eliminations and Adjustments Rules: Goodwill treatment Non-controlling interests This automatic entry is triggered if an Entity reflects Goodwill related to an investment by a parent that has less than a 100% Ownership rate in said subsidiary. In this case, any Goodwill related to the investment must be apportioned in the equity section between Group share and NCI share. Three rules are used in this case, as Goodwill reflecting a partner of I_NONE must be treated separately from Goodwill reflecting a real interco partner. The Method-based Multipliers used in the full goodwill adjustment rules simply apply factor 1 to the selected amount since the amount declared in the journal entry is fully attributable to the noncontrolling interests in this case. 3.3.5. Consolidated Equity Calculation Rules: EQUITY 3.3.5.1. Group and Non-Controlling Interests Split The equity of consolidated companies is split between the group and non-controlling interests according to the following principle: The accounts E1110-Issued capital and E1210-Share premium are transferred to the group retained earnings and retained earnings of non-controlling interests for any entity except the parent company of the group For other equity accounts, the group share is maintained on the original account, and the noncontrolling interest share is calculated on the related non-controlling interests account. The relationship between source equity accounts and non-controlling interests equity accounts is summarized in the table below: 31
Group equity account (selection) E1110 Issued capital E1210 Share premium E1310 Treasury shares E1510 Revaluation surplus, before tax NCI equity account (destination) E2010 NCI - reserves and retained earnings E2010 NCI - reserves and retained earnings E2070 NCI - Treasury shares E2020 NCI - Revaluation surplus before tax E1511 Income tax on revaluation surplus E2021 NCI - Income tax on revaluation surplus E1520 Actuarial gains and losses, before tax (suspense account) E1521 Income tax on actuarial gains and losses (suspense acc.) E1540 Hedging reserve, before tax E1541 Income tax on hedging reserve E1550 Fair value reserve, before tax E1551 Income tax on fair value reserve E1560 Foreign currency translation reserve, before tax E1561 Income tax on foreign currency translation reserve E2030 NCI - Actuarial gains and losses, before tax (suspense acc) E2031 NCI - Income tax on actuarial gains and losses (suspense acc.) E2040 NCI - Hedging reserve, before tax E2041 NCI - Income tax on hedging reserve E2050 NCI - Fair value reserve, before tax E2051 NCI - Income tax on fair value reserve E2060 NCI - Foreign currency translation reserve, before tax E2061 NCI - Income tax on foreign currency translation reserve E1570 Equity component of compound financial instruments E1610 Retained earnings E2080 NCI - compound financ. instruments E2010 NCI - reserves and retained earnings Equity consolidation postings mentioned above are triggered by the following Eliminations and Adjustments rule: EQUITY adjustment rule Selects accounts via the CO_EQUITY1 and CO_EQUITY2 TYPELIM account property values. For accounts in the CO_EQUITY1 group, these accounts are cancelled out (see Destination ALL account) against the group retained earnings account and non-controlling interests retained earnings, accounts E1610 and E2010 used as destination in the Destination group account and Destination minority account columns. For accounts in the CO_EQUITY2 group, the accounts are cancelled out again themselves only for the portion that should be moved to dedicated NCI accounts for each equity account. Note: for Equity method Entities, the rules essentially calculate and post the net assets as seen through the equity accounts, except the posting to Destination ALL is always to the asset account A1500- Equity method investments. This essentially reinstates the value of the investment at the net asset value of the Entity overall (remember, the Investment itself was eliminated in the INVESTMENTS rule). Any NCI is set aside in the appropriate equity accounts, as detailed above, and the income statement is also adjusted for any NCI effects. Selects accounts via the CO_GOODWILL TYPEELIM account property values. Goodwill for Full method entities is posted related to the Asset value recorded, by flow when applicable, between group and NCI equity. 32
For that purpose, several Method-based Multipliers are used here so that for CO_EQUITY1, the original account is completely cancelled out (1 formula) and the group retained earnings and noncontrolling interests retained earnings populated with the group share (POWN) and non-controlling interests share (1-POWN) respectively; but for CO_EQUITY2 and CO_GOODWILL, there is only movement in the original account and NCI accounts at formula 1-POWN. These entries are booked on the CONS_EQ AuditID. These entries apply to all consolidation methods except the holding (main company), that is not only to full and proportionate but also to the equity method (see below). 3.3.6. Integration: treatment of Holding, Full vs. Equity methods Rule: INTEGRATION Entities accounted for using the Equity method are handled by calculating the net assets, and posting those on the dedicated equity method investment account in the assets (A1500, counterpart retained earnings in the net equity (E1610). This is accomplished by the EQUITY rule as described above. In order to handle the fact that all local data cannot be included in reporting (data for equity method entities is not relevant in group reporting), the Starter Kit CONSOLIDATION model has been enhanced to use integration rules. This allows an Eliminations and Adjustments rule to be flagged as an integration rule, and this rule determines which entities should be integrated for group reporting. Source account TBS- Balance Sheet (END flow) and account TP000 (F10 flow) are used, with a Destination group account and flow of the same values. Method-based multiplier I000 imparts the formula of 1 for Group, and no other values. As a consequence of this integration rule, along with the CONSOLIDATION model setting of use integration rules, only those entities that use the methods indicated in I000 (holding, full) will be included in group reporting. 3.3.7. Ownership Changes To produce the Statement of Cash Flows and the Statement of Changes in Equity, the impacts of status changes for entities in the ownership structure, such as incoming and divested companies, are tracked separately from other changes. 3.3.7.1. Defining dedicated Flows and Audit IDs With an adapted configuration, the consolidation engine is able to automatically populate distinct flows with the amount of ownership change effects, depending on the changes in the Entity s and/or the Interco s status in the consolidation ownership structure. These flows are identified using the FLOW_TYPE property of the FLOW dimension. This process is triggered on automatic-type AuditIDs for divestitures; the postings are included in all of the rules above for flow F01, F02, F92 or F98 as appropriate. 33
The Flows, flow types, and identification process are summarized in the following table: Flow F01-Incoming units F02-Change in consolidation method F92-Change in interest / consolidation rate F98-Outgoing units FLOW_TYPE Entity Identification process Property by the consolidation engine VARSCPNEW Entity not included in the prior ownership structure VARSCPMETH Current consolidation method is different from prior ownership structure VARSCPPERC Current consolidation rate / interest rate is different from prior ownership structure VARSCPLEAV Appropriate divestiture method assigned to the entity (see below) 3.3.7.2. Outgoing Units General Case For all outgoing units, the reversal of the closing position is identified to show and calculate the impact of outgoing balance sheet items. For Entities leaving the consolidation ownership structure at the beginning of the period, possible reported balance sheet movements and income statement items have no impact on the financial statements. The following consolidation methods are created in the Business Rules in order to trigger the built-in process: 28 Full, Divested last year end 29 Full, Leaving during current year 38 Equity, Leaving last year end 39 Equity, Leaving during current year The different Eliminations and Adjustments rules trigger the movement of the closing position of all outgoing units from flow F99 to flow F98. In addition, for Entities leaving the consolidation ownership structure at the beginning of the period, method 28 or 38 cancels out balance sheet flows and income statement items. 3.4. Account Based Calculation Rules Account Based Calculation Rules are used to build the Statement of Cash Flows, Statement of Comprehensive Income and statement of Changes in Equity. The Statement of Cash Flows, which is retrieved according to the indirect method, derives from the Balance Sheet flows and the Income Statement accounts. It discloses cash effects from operating, investing and financing activities as required by the IAS 7. Specific accounts, whose code begins with SCF, SCI, SCE, have been created to store the items of the Financial Statements. This makes it possible to post manual journal entries to correct the Financial Statement, using a dedicated audit ID FS_ADJ Adjustment on Financial Statements. These accounts are fed during the consolidation process by account-based calculation rules that select financial accounts (BS and some of the P&L) thanks to the property DIMLIST_FS, select the relevant flows, select all audit IDs except the SCF_ADJ audit ID and generate the SCxxxx account on flow F99, keeping the source audit ID. Using this property DIMLIST_FS enables you to update easily the configuration when adding a new balance sheet account. 34
For example, the item SCF5320 Repayment of borrowings is generated by account-based calculation rule SCFby aggregating the amounts stored on flow F30 decrease of all accounts with DIMLIST_SCF is equal to S-SCF-FIN-L1. 35
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT 4. Controls 4.1. Set of Controls for Actual To insure the correctness of consolidated statements, including the Statement of Cash Flows and the Statement of Changes in Equity, the quality of reported data is checked at the local level (Entity by Entity) for AuditIDs posting in LC (INPUT, LOCAL_ADJ, ADJ_LC_M). The following groups of controls are performed via the Controls Monitor: Balance Sheet: assets = liabilities + equity, balance of the opening and closing position, consistency of the gross value / amortization and impairment, net income in equity vs. P&L Flows: authorized flows, balancing flows Intercompany accounts (partner validity and breakdowns) All the controls are grouped into several sets of controls: A_FIRSTCONSO_CLOSING: no controls related to detailed flow reporting, and period = first consolidation for version A_CLOSING: no controls related to detailed flow reporting A_FIRSTCONSO_INFLOW: controls related to detailed flow reporting, and period = first consolidation for version A_INFLOW: controls related to detailed flow reporting Controls are divided into six types of controls: Controls for prior year closing vs. current year opening flows (named A0_xx). For the balance sheet by account, and then for each intercompany account by partner, these controls check both opening balance and closing balance for consistency across years. These controls are broken down by AuditID to ensure the consistency of each input level. Controls for balance analysis for Gross/Net accounts (named A1_xx). For accounts which have Gross and net components (such as PP&E), these controls check that the Gross component is greater than or equal to the net component, at both Opening (F00) and closing (F99). In addition, Total Assets and Total Liabilities are also checked for this control. Controls for interco analysis (named A2_xx). For all interco accounts (B/S and P&L), controls check that the sum of interco amounts (I_ALL) is lower than or equal to the total amount (I_NONE). Controls for Flow analysis (named A3_xx). For each account for which a flow analysis is required, these controls check that the Net variation flow (F15) is equal to zero. Several controls also check that the total value of some specific flows is balanced ( F50-Reclassification, F05-Change in accounting policies, F01-Incoming ). These controls are broken down by AuditID to ensure the consistency of each input level. Controls for interco by flow analysis (named A4_xx). For certain interco accounts, controls check interco changes do not have a residual value in the Net variation flow (F15); in other words, at each partner that flow equals zero. Flow consistency (named T_00). Checks that for each B/S account, the closing balance (flow=f99) equals the sum of opening balance and the movements (calculated in the END parent member). This control is broken down by account and AuditID. Although the Starter Kit calculations ensure that the F99 36
flow equals the END flow when using Input forms and when importing files, the user can still deactivate the default logic upon import of a file. Because the default logic triggers the calculation of the Net Variation flow (F15): this would result in a mismatch of the F99 flow and the END flow. All controls are assigned the Blocking type. Therefore the control status is checked when the work status is changed in the Consolidation Monitor. 5. Reports Input forms and Reports are defined by using the EPM Office Add-in Excel. 5.1. Input Forms The Actual version data entry is performed using several input forms, located here: Server Input Form Folder > ACTUAL > INPUT FORMS. Input form name Use 10 Balance Sheet.xlsx Allows entering BS data (opening and closing balances) 20 Profit and Loss.xlsx Allows entering P&L data (closing balances) 30 Intercompany.xlsx Allows the user to input details by interco partner for one account selected in the EPM context. 40 Balance Sheet by Flow.xlsx Allow entering details by flow for the BS 5.1.1. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using the hierarchy PARENTH1, base members, properties, or a combination of these. To ease the enhancement of the Starter Kit configuration, selections are dynamic so that new members will be automatically inserted in the forms and reports provided that these members are assigned the correct parent member and properties. The tables below list the properties used for the members selection in the Input forms. Dimensions Property Examples Account INPUTFLOWS F20 F30 F25 F00 F99 F05 F50 ISINTERCO IC, ICM 5.1.2. Formatting Formatting of the Input forms is defined in Formatting Sheets. Depending on the formatting requirements of the Input form, several Formatting Sheets have been defined: Input formatting (which applies to the Balance input form) InputFlow (which applies to input forms from the flow analysis subfolder) Intercompany (which applies to Intercompany input forms) 37
Formatting is based on the vales defined in the account property Style (N, T7 ), and can be defined by specific members/property values: 5.1.3. Specific Settings Intercompany Input Form To enable the insertion of new interco members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. Flow Analysis Input Form Excel conditional formatting is also used in the formatting sheet to stripe the cells which correspond to an incorrect Account / Flow combination. This is defined as follow: In the report, a local member is defined, with the EPMMemberProperty, to fetch the INPUTFLOWS property which contains the list of possible flows for each account. This property is then used in the conditional formatting formula. However, the value of the INPUTFLOWS property is not visible, because of a specific format applied to this local member. In the Formatting Sheet, an Excel conditional formatting is defined for the base level row. This conditional formatting is based on a formula which checks that the flow ID in the column header is included in the INPUTFLOWS property value of the account in the row. When this is not true, the cell is striped. This conditional formatting works if the following conditions are met: o The flow ID must be 3 digits long (example: F50) o The cell named col_inputflows must contain the column number with the INPUTFLOWS property (column 4 in the delivered input forms) o The cell named row_flow must contain the row number of the flow (row 7 in the delivered input forms) 5.1.4. Workbook Protection Input forms (but not reports) are password protected. Password protection prevents users from changing, moving, or deleting important elements of the workbook. In this Starter Kit, the password is SAP. To remove the password, select EPM > Options > Sheet Options, then select the Protection tab and enable the No Protection option. Choose a password that is easy to remember, because if you lose the password, you can no longer access the protected worksheet or workbook. For more information about password protection, see the EPM Add-in and Microsoft Excel documentation. 38
5.2. Reports 5.2.1. List of Reports Actual reports provided in the starter kit are located into: Server Input Form Folder > ACTUAL > LOCAL REPORTS > detailed reports Server Report Folder > ACTUAL > detailed reports, in folders for Financial Reports, Analysis Reports, Breakdown Reports, and Control Reports Corporate Budget and Forecast folder: Actual review reports comparing Actual data to Budget and Forecast data. Reports are listed below: Subfolder Report name Content 10 Financial Statements 10 Income Statement.xlsx 11 Statement of Other Comprehensive Income.xlsx 12 Statement of Financial Position.xlsx 13 Statement of Cash Flows.xlsx 14 Statement of Changes in Equity.xlsx 20 Analysis Reports 20 IS by AuditID.xlsx 21 IS by Entity.xlsx 22 SCI by AuditID.xlsx 23 SCI by Entity.xlsx 24 BS by Flow.xlsx 25 BS by AuditID.xlsx 26 BS by Flow and AuditID.xlsx 27 BS by Entity.xlsx 28 SCF by AuditID.xlsx 29 SCF by Entity.xlsx 30 Breakdown Reports 30 BKD by Entity.xlsx 31 BKD by AuditID and Interco.xlsx These are the US GAAP Financial Reports These reports provide additional details of the B/S and I/S by Flow, AuditID, Entity. These reports provide the details of an account balance by entity or partner. The account is selected in the EPM Context. 39
40 Control Reports 40 Dashboard.xlsx 41 A=L by AuditID.xlsx 42 BS = IS by AuditID.xlsx 43 Flow Balance by AuditID.xlsx 44 A=L by Entity.xlsx 45 BS = IS by Entity.xlsx 46 Flow Balance by Entity.xlsx 47 Opening Balance Integrity.xlsx These reports provide additional controls, such as clearing accounts, flows that should be balanced, controls by AuditID... 30 Actual Review Reports (Corporate budget and forecast folder) Actual N Review P&L (MTD) Actual N Review P&L by entity (MTD) Actual N Review SCF (QTD) Actual N Review SCF by entity (QTD) Actual N Review vs BM_AR N P&L (MTD) Actual N Review vs BM_AR N P&L by entity (MTD) Actual N Review vs BM_AR N SCF (QTD) Actual N Review vs BM_AR N SCF by entity (QTD These reports provide the CFO with a full view by pulling data from the different versions (Actual, Budget, Forecast) and offering a presentation of cumulated or decumulated data by entity and by account. Local Reports in the Server Input Form Folder are below: Subfolder Report name Content Local Reports 90 Statement of Financial Position.xlsx 91 Income Statement.xlsx 92 Intercompany Control Report.xlsx 93 Consistency between opening balance and previous year closing.xlsx 94 Statement of Cash Flows.xlsx These are reports that can be used by local users to verify and validate data prior to submission 40
5.2.2. Members Selection The tables below list the properties used for the members selection in the Reports. Dimensions Property Examples Account STYLE N, T7 ISINTERCO IC, ICM For period comparison, the member selection for the TIME dimension is defined using the Offset function. 5.2.3. Formatting Depending on the formatting requirements of the Reports, several Formatting Sheets have been defined. Formatting Sheets Format R1 and Format R2 are most commonly used. 5.2.4. Drill Down Financial Statement Reports are built with the ability, when applicable, to drill down directly from a cell into another, more detailed report (an Analysis or Control report, for instance). Colored marks on a cell will indicate that you may drill down from that cell. 6. Business Process Flows The consolidation scenario for actuals is divided into 2 main Business Process Flow (BPF) types: INPUT tasks: Load files or manual entry of balance sheet, income statement, breakdown by movement and intercompany; run data validation; view local reports; and data submission. CONSOLIDATION tasks: Exchange rates; consolidation ownership structure; copy opening balances; run preliminary checks, post manual journal entries; run consolidation; check the consolidation dashboard; view financial reports; view analysis reports; view breakdown reports; view control reports There are 2 versions of each of the BPF types noted above: Version 1 (denoted _CLOSING) is used when there is no need for detailed FLOW reporting within the group. This version eliminates tasks where accounts are broken down by detailed flows, and also does not include SCF, SCI or SCE reporting Version 2 (denoted _INFLOW) is used when detailed FLOW reporting is required, and includes all tasks required to accomplish this, including SCF, SCI and SCE reporting The INPUT BPF is designed for local users, whereas the CONSOLIDATION BPF is designed for central users. One consolidation process is defined for all consolidation frequencies (monthly, quarterly ). 41
The high-level process, across the two BPFs, is shown below: CONSOLIDATION Exchange Rates Ownership Changes Copy Opening Work Status Ck INPUT Enter Data Validate Data Run local reports CONSOLIDATION Manual J.E.'s Interco Recon Group INPUT Interco Recon Local Submit Data CONSOLIDATION Consolidation Control Reports Analysis Reports Breakdown Reports Financial Reports 42
7. Integration with ERP 7.1. Transactional data flow The Transactional Data Flow is shown in the following diagram: More information on Infocube, Data Store Object and Data Source can be found in the EPM RDS Financial Close and Disclosure Management documentation at http://www.sap.com//solution/rapid-deployment.html. This chapter only focuses on the last part of the data flow: it explains the configuration objects available in the EPM Excel Add-In to launch Data import. 7.2. Transformation and conversion files The starter kit includes two transformation files: ECC GL Data (enable data import for Balance sheet accounts) ECC GL Data PL (enable data import for P&L accounts) The transformation files provided in the starter kit are based on a BW staging cube PKG/FC_C01 delivered with the EPM RDS Financial Close & Disclosure Management. The BW system has been connected to an ECC source system where financial data from the US baseline (SAP General Ledger) has been loaded. 43
Transformation files enable Actual local data import. Therefore, the following dimension members are predefined in the mapping: - VERSION: ACTUAL - CURRENCY: LC - Local Currency - SCOPE: S_NONE Not Consolidated - AUDIT_TRAIL: INPUT Each transformation file is also linked to a conversion file: ECC GL (for Balance sheet accounts) ECC GL PL (for P&L accounts) Conversion files include the following conversion tables: - INTERCO - ENTITY - ACCOUNT - FLOW - TIME (only for ECC GL Conversion PL Conversion file) Interco and Entity conversion tables are filled in with the entities/interco created in in our BW staging cube for testing purpose. These conversion tables should be cleared and replaced with the list of FI/CO Company codes mapped with the members created in the ENTITY and INTERCO BPC NW dimensions. The Entity mapping table could be deleted if the FI/CO Company codes are the same in the BPC NW ENTITY dimension. The Account conversion table is based on the FI/CO US baseline (SAP General Ledger) mapped with the BPC NW starter kit for IFRS chart of accounts. This conversion table should be updated if data source is not based on the US baseline and if the IFRS starter kit chart of accounts has been enhanced. The Flow conversion table is based on FI/CO movement types mapped with the BPC NW starter kit for IFRS list of flows. This conversion table should be updated according to FI/CO enhancements and/or IFRS starter kit list of flows update. The Time conversion table is required for P&L data because it is stored on a periodic basis in our BW staging cube whereas balance sheet data is stored on a year to date basis. This storage principle could be different in your customer environment and could require an update of the transformation files. For instance, if Balance sheet and P&L data is stored on a YTD basis, it would be easier to include P&L accounts conversion table into the Balance sheet accounts conversion table and to delete the transformation and conversion files dedicated to P&L. The Time conversion table provided in the starter kit enables data load on 2012.12 period. This period has been chosen for testing purpose and should be manually updated according to the data import period. For instance, to load P&L data on February 2012, the Time conversion table should be the following: 44
7.3. Transactional data load Transactional data load can be done when running the Package Load Transaction Data from BW InfoProvider UI and selecting the appropriate info provider and transformation file. This package should be run two times to load Balance sheet and P&L data. 45
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT C. BA - ANNUAL BUDGET 1. Overview of the Process The Budget reporting configured in the starter kit aims at producing and validating consolidated budget data for business corporate management purposes. This Annual Budget version should be considered as the first step of the Corporate Budget process. A second version (BM Monthly Budget) will be used to split the Annual budget on a monthly basis. The BA version configured in the starter kit offers: A P&L (same as for the Actual version) A simplified Statement of Cash Flows to be entered (unlike the Actual, for which the SCF is calculated). This version doesn t propose any balance sheet reporting: No flows except F10 No in-flow consolidation processing The Annual Budget reporting cycle can be described as follows: 46
2. Dimensions and Properties 2.1. Unified Chart of Accounts The starter kit provides a unified Chart of Accounts in order to ensure consistency between reporting cycles for every step of the data process: input, business rules, retrieval and analysis. As a consequence, the Annual Budget version as well as the Monthly Budget and the Forecast versions rely on: Same Income Statement accounts as for the Actual version Simplified Statement of Cash Flows accounts mapped with the Actual version. Indeed, in some cases, it aggregates several accounts from Actual into one account. For example, the account SCF210B Adj. for increase (decrease) in working capital corresponds to five accounts in the Actual SCF. Otherwise, the same account is common to all versions (e.g. SCF1000 Profit/Loss). Totals accounts (TSCFxxx) are used to organize the Statement of Cash Flows accounts into hierarchy. 2.2. Account Properties Properties of accounts are used to configure dynamically most of the objects in order to ease and to ensure the reliability of the starter kit. The table below lists the Properties defined in the starter kit: Property ACCTYPE BUDGET_INPUT SENDTOBUDGET TYPELIM Description Used in the logic scripts and in the input forms (Expenses formatting) Used in the input forms to select Cash Flow accounts Used to select IS and SCF accounts for data transfer between Consolidation and PeriodicEntry Models Used to select accounts in Elimination rules GROUP UPROFILE ISINTERCO Used in the Logics script to exclude Balance Sheet accounts Used to filter consolidation accounts (2CONSO) in the input forms so that only local level general ledger accounts (1GL) are initialized Used in input forms to display the IC indicator as appropriate 3. Logic Scripts Logic Scripts are used in the Annual Budget process to prepare data input environment and to perform consolidation calculations. 3.1. BA_YTD Script This script is part of the preparatory tasks of the Central Annual Budget process. It is intended to populate the "SCF7100 - Cash and cash equivalents at beginning of period" account of Annual Budget with the "SCF7300 - Cash and cash equivalents at end of period" account of September Forecast (December Y-1). Detailed logic scripts are available in appendix (see 0). 47
3.2. BA_Consolidate Script The script corresponds to standard conversion and consolidation programs. The Version, the Scope and the Time are configured with the syntax %_SET so that the user can select the appropriate members when running the associated package. Detailed logic scripts are available in appendix (see Error! Reference source not found.). 3.3. Default Script This script described in the Actual chapter (See B.2.1), is used to calculate the allocation of the net income between group share and NCI. 3.4. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 3.5. Associated Package The dedicated logic scripts used for Annual Budget are run through the following packages: Logic script Package name Package Group BA_YTD BA_CONSOLIDATE 2_1 BA YTD Preparatory package 2_2 BA Consolidate Consolidation \Financial processes 4. Business Rules 4.1. Currency Translation Rules 4.1.1. Functional Requirements Foreign subsidiary accounts are converted using the closing rate method: The Income Statement is converted using the average rate for the period. For the Statement of Cash Flows: Flows are converted at the average rate for the period. Cash and cash equivalent at opening and closing are converted using respectively the opening and closing rate. The currency difference resulting from the translation at different rates (average, opening and closing) is recorded in a dedicated SCF account (SCF6100- Effect of exch. rate changes on cash & cash equiv.) on flow F10. 4.1.2. Configuration Rate Definition and Rate Input form Unlike in the Actual version, the Opening Rate (OPE) is created in RATEID dimension for storing Opening rate (No in-flow consolidation). Rates are entered in the specific Rate Input for Forecast and Annual Budget document, stored in the Rates Model. 48
Rule Definition Currency Translation Rules select accounts using the RATETYPE property of the ACCOUNT dimension. Accounts Currency Translation Rule P&L items Conversion of profit and loss items AVER All variations SCF items Conversion of statement of cash flows accounts CTA calculation on account SCF6100 (Effect of exch. rate changes on cash & cash equiv.) / flow F10 Rule ID = RATETYPE property SCFAVER CCE at beginning of period, CCE at acquisition date (incoming) CCE at end of period Conversion of Cash and Cash Equivalent (CCE) opening position in the Statement of cash flows CTA calculation on account SCF6100 (Effect of exch. rate changes on cash & cash equiv.) / flow F10 Conversion of Cash and cash equivalent closing position in Statement of cash flows SCFOPE SCFEND 4.2. Eliminations and Adjustments Rules Most of the eliminations and adjustment rules configured for the Actual version that select P&L accounts apply to the Annual Budget version but have to be completed in order to trigger elimination on the statement of cash flows items. Therefore, elimination and adjustment rules specific to Budget and Forecast versions have been configured, based on the following assumptions: The rule ID indicates the type of elimination, beginning with 0 so that Budget/Forecast rules can be easily identified. The rules are filtered by Budget/Forecast versions (namely BA, BM, BM_AR, F09 and F09TEC1) so that they strictly apply to these versions and do not impact ACTUAL version. In the design rules, whenever it is possible, the selection and the destination of amounts are triggered using properties, which makes configuration easier (e.g. use of TYPELIM property to select account in rules). The list of the rules that applies to Annual Budget data is presented in the table below: Rule ID Purpose of the rule Actual ICELIM 0_ICELIM_SCF Elimination of intercompany operations (P&L and BS accounts) Impact of internal elimination of interest income / expenses on the statement of cash flows X Budget / Forecast MTH_EQUITY Cancelling accounts for equity method entities X X MTH_EQUITY2 Restoring equity accounts for equity method companies X X 0_EQUITY2_SCF MTH_EQ_L Restoring share of P&L for equity method companies in the statement of cash flows Managing equity method for outgoing and merged entities during the period X X X X X 49
Rule ID Purpose of the rule Actual 0_EQ_L_SCF Cancellation of SCF items for entities at equity divested during the period Budget / Forecast MTH_PROP Proportionating accounts for proportionate entities X X MTH_PROP_L 0_PROP_L_SCF 0_SCO_INC_SCF 0_SCO_OUT_SCF Managing proportionate method for outgoing and merged entities during the period Proportionating SCF items for entities (PC) divested during the period Reclassification of Cash and Cash Equivalent at opening for incoming entities FC / PC Reclassification of Cash and Cash Equivalent at closing for divested FC/PC entities with movements 0_DIV_ALL Elimination of internal dividends received for FC,PC,EM X 0_DIV_FC_PC 0_ISSUE_SHARE Elimination of internal dividends paid by FC or PC held entities to Holding FC PC Elimination of proceeds of issuing share declared by FC or PC held entities NCI_xxxxxx Allocation between group share and NCI X X X X X X X X X X 4.2.1. Proportionate Entities For proportionate entities, same rules apply as for the Actual version. One additional rule has been created 0_PROP_L_SCF, for outgoing proportionate entities. Example of an outgoing entity consolidated using the proportionate method is provided in the section Outgoing entities hereafter (Case 2). 4.2.2. Entities at Equity Two new rules have been added to manage the impacts on the Statement of Cash Flows under specific events. 0_EQUITY2_SCF (Restoring share of P&L for equity method companies in the statement of cash flows) 0_EQ_L_SCF (Cancellation of SCF items for entities at equity divested during the period) Example: A is accounted for at equity with a Automatic audit Ids INPUT RULE ID MTH_E RULE ID METH_ TOTAL consolidation rate of 20% QU EQU P1110 Revenues 100 METH_EQUITY -100 0 P3000 Share of P&L of associates and JV accounted for using EM METH_EQUITY2 20 20 P999T Net income 100-100 20 20 SCF1000 Profit (loss) 100 METH_EQUITY -100 0_EQUITY2_SCF 20 20 SCF2270 Adjustments for profits of associates 0 0 0_EQUITY2_SCF -20-20 TSCF300 Net cash flows from (used in) operating activities 100-100 0 0 TSCF700 Net increase (decrease) in cash and cash equivalents 100-100 0 0 SCF7100 CCE at beginning of period 200-200 0 0 SCF7300 CCE at end of period 300 300 0 0 50
4.2.3. Incoming Entities Due to the difference of processing for the SCF between Actual and Budget: A new rule has been created to manage the reclassification of Cash and Cash Equivalent at opening for incoming entities (FC / PC) named 0_SCO_INC_SCF A specific account SCF720B Cash and cash equivalent at opening (incoming) has been created. This account is reclassified on the SCF account SCF420B Purchase of short term investment and investment securities when the incoming entity is consolidated using the full consolidation method or the proportionate method (no reclassification for entities at equity). Example: Case 1: A (FC) acquires 60% of B (PC) for 600 CCE at acquisition date of B = 500 A B B B A B Group INPUT INPUT Rule ID MTH_PROP Rule ID SCO_I NC Consolidated SCF420B Purchase of short term investment and investment securities -600 0_SC 300-600 300-300 TSCF400 Net cash flows from (used in) investing activities -600 300-600 300-300 TSCF700 Net increase (decrease) in cash and cash equivalents -600 300-600 300-300 SCF720P CCE at acquisition date (incoming) (1) 500 MTH_PROP -200 0_SCO -300 0 0 SCF7300 CCE at closing -600 500 MTH_PROP -200 0-600 300-300 (1) Reclassification based on SCF720P for FC/PC using PCON rate applied to the amount (the apportionnement is triggered apart and you cannot use its result) Case 2: A (FC) acquires 20% of B (EM) for 200 CCE at acquisition date of B = 500 A B B A B Group INPUT INPUT Rule ID MTH_EQU Consolidated SCF420B Purchase of short term investment and investment securities -200-200 0-200 TSCF400 Net cash flows from (used in) investing activities -200-200 0-200 TSCF700 Net increase (decrease) in cash and cash equivalents -200-200 0-200 SCF720P CCE at acquisition date (incoming) (1) 500 MTH_EQUITY -500 0 0 SCF7300 CCE at closing -200 500-500 -200 0-200 4.2.4. Outgoing Entities An additional rule has been configured for the SCF to reclassify Cash and Cash Equivalent at closing for divested FC/PC entities (0_SCO_OUT_SCF). It reclassifies the account SCF7300 - Cash and Cash Equivalent at closing on the SCF account SCF410B Proceeds from sale of short term inv. and inv. Securities (no reclassification for entities at equity). Case 1: Full A (FC) sells 80% of B for 800 (= Net book Value) Input Automated entries Consolidated Cash and Cash Equivalent at selling date of B = 500 A B Rule ID B A B Group P1100 Revenue 400 0 400 400 P3000 Share of P&L of associates and JV accounted for using EM 0 P999T Net Income 0 400 0 0 0 400 400 SCF1000 Net Income 0 400 0 400 400 SCF2270 Adjustments for profits of associates 0 TSCF300 Net cash flows from (used in) operating activities 0 400 0 0 0 400 SCF410B Proceeds from sale of short term inv. and inv. securities (1) 800 0_SCO_OUT_SCF -500 800-500 300 TSCF400 Net cash flows from (used in) investing activities 800 0-500 800 300 TSCF700 Net increase (decrease) in cash and cash equivalents 800 400-500 800 700 SCF7100 CCE at opening 100 0 100 100 SCF7300 CCE at closing 800 500-500 800 0 800 (1) Reclassification based on SCF7300 made by rule 0_SCO_OUT_SCF 51
Case 2: Proportionate A (FC) sells 40% of B (PC) for 600 Input Automated entries Consolidated Cash and Cash Equivalent at selling date of B = 500 A B Rule ID B Rule ID B A B Group P1100 Revenue 400 MTH_PROP_L -240 0 160 160 P3000 Share of P&L of associates and JV accounted for using EM 0 P999T Net Income 0 400-240 0 0 160 160 SCF1000 Net Income 0 400 0_PROP_L_SCF -240 0 160 160 SCF2270 Adjustments for profits of associates 0 TSCF300 Net cash flows from (used in) operating activities 0 400-240 0 0 160 SCF410B Proceeds from sale of short term inv. and inv. securities 600 0_SCO_OUT_SCF -200 600-200 400 TSCF400 Net cash flows from (used in) investing activities 600 0 0-200 600 400 TSCF700 Net increase (decrease) in cash and cash equivalents 600 400-240 -200 600 560 SCF7100 CCE at opening 100 0_PROP_L_SCF -60 0 40 40 SCF7300 CCE at closing 600 500 0_PROP_L_SCF -300 0_SCO_OUT_SCF -200 600 0 600 Case 3: Equity Method A (FC) sells 20% of B for 200 Input Automated entries Consolidated Cash and Cash Equivalent at selling date of B = 500 A B Rule ID B A B Group P1100 Revenue 400 MTH_EQUITY -400 0 0 0 P3000 Share of P&L of associates and JV accounted for using EM MTH_EQUITY_2 80 0 80 80 P999T Net Income 0 400-320 0 80 80 SCF1000 Net Income 0 400 0_EQ_L_SCF / 0_EQUITY2_SCF -320 0 80 80 SCF2270 Adjustments for profits of associates 0_EQUITY2_SCF -80 0-80 -80 TSCF300 Net cash flows from (used in) operating activities 0 400-400 0 0 0 SCF410B Proceeds from sale of short term inv. and inv. Securities 200 200 0 200 TSCF400 Net cash flows from (used in) investing activities 200 0 0 200 200 TSCF700 Net increase (decrease) in cash and cash equivalents 200 400-400 200 200 SCF7100 CCE at opening 100 0_EQ_L_SCF -100 0 0 0 SCF7300 CCE at closing 200 500 0_EQ_L_SCF -500 200 0 200 4.2.5. Eliminations of Reciprocal Operations The Elimination of reciprocal intercompany operations rule (ICELIM) applies to the Income Statement reciprocal accounts for the Budget as well as for the Actual. An additional rule has been created to manage the impact of reciprocal elimination of interest income (P2120) and expenses (P2220) on the SCF named 0_ICELIM_SCF. These entries are posted on ELIM10 AuditID. See example hereafter. A = Full Consolidation B = Full Consolidation LOCAL IC Eliminations Consolidated Elimination in P&L: A B Rule ID A B A B P2120 Interest income 50 ICELIM -50 0 0 P2150 Other financial income 70 ICELIM -70 0 0 P2220 Interest expenses -80 ICELIM 80 0 0 P2230 Other financial expenses -40 ICELIM 40 0 0 P229CL Clearing account - financial result ICELIM 120-120 120-120 P999T Net income 120-120 0 0 120-120 Elimination in SCF from P&L SCF1000 Net income 120-120 0_ICELIM_SCF 0 0 120-120 SCF2020 Adjustments for finance costs -50 80 0_ICELIM_SCF 50-80 0 0 SCF300B Other in flows outflows operating 0-80 0_ICELIM_SCF 0 80 0 0 TSCF300 Net cash flows from (used in) operating activities 70-120 50 0 120-120 SCF491B Other inflows (outflows) of cash 50 0 0_ICELIM_SCF -50 0 0 0 TSCF400 Net cash flows from (used in) investing activities 50 0-50 0 0 0 TSCF700 Net increase (decrease) in cash and cash equivalents 120-120 0 0 120-120 SCF7100 Opening Cash & Cash Equivalent 100 400 100 400 SCF7300 Closing Cash & Cash Equivalent 220 280 0 0 220 280 52
4.2.6. Elimination of Internal Dividends The process for eliminating internal dividends in Actual version can t apply to Budget and Forecast versions as it is based on the payer s declaration in the equity. Consequently for Budget: Dividends are automatically eliminated based on the receiver s declaration in P&L. Two rules have been created 0_DIV_ALL eliminates internal dividends in the P&L and in the Net cash Flows used (from) operating activities. 0_DIV_FC_PC eliminates the dividend received / paid at the holding entity, based on its P&L declaration (for FC and PC consolidation methods). Example: B pays a dividend to A (full consolidated). The local data entry is presented hereafter, then, according to the consolidation method of B (full consolidated or at equity), the eliminations will differ. Data entry Partner A P2140 Dividend received B 100 P999T Net income 100 Entity B SCF1000 Profit (loss) 100 0 SCF232P Other adj. for reconcile profit(loss) -100 TSCF230 Other adj. for reconcile profit(loss) -100 TSCF200 Adjustments for reconcile profit (loss) -100 TSCF300 Net cash flows from (used in) operating activities 0 SCF4810 Dividend received B 100 TSCF400 Net cash flows from (used in) investing activities 100 SCF5500 Dividend paid A -100 TSCF500 Net cash flows from (used in) financing activities -100 TSCF700 Net increase (decrease) in cash and cash equivalents 100-100 Case 1 - A and B full consolidation Apportionated elimination consolidated data A B Rule ID A B A B Group P2140 Dividend received (1) 100 0_DIV_ALL -100 0 0 P999T Net income 100-100 0 0 SCF1000 Profit (loss) (1) 100 0 0_DIV_ALL -100 0 0 0 0 SCF232B Other adj. for reconcile profit(loss) (1) -100 0_DIV_ALL 100 0 0 0 TSCF230 Other adj. for reconcile profit(loss) -100 0 100 0 0 0 0 TSCF200 Adjustments for reconcile profit (loss) -100 0 100 0 0 0 0 TSCF300 Net cash flows from (used in) operating activities 0 0 0 0 0 0 0 SCF4810 Dividend received (2) 100 0_DIV_FC_PC -100 0 0 0 TSCF400 Net cash flows from (used in) investing activities 100 0-100 0 0 0 0 SCF5500 Dividend paid (2) -100 0_DIV_FC_PC 100 0 100-100 0 TSCF500 Net cash flows from (used in) financing activities 0-100 100 0 100-100 0 TSCF700 Net increase (decrease) in cash and cash equivalents 100-100 0 0 100-100 0 (1) Elimination triggered for all entities / partners (2) Elimination triggered for entities / partners except at equity 53
Case 2 - A full consolidation and B at equity Apportionated elimination consolidated data A B Rule ID A B A B Group P2140 Dividend received (1) 100 0_DIV_ALL -100 0 0 P999T Net income 100-100 0 0 SCF1000 Profit (loss) (1) 100 0 0_DIV_ALL -100 0 0 0 0 SCF232B Other adj. for reconcile profit(loss) (1) -100 0_DIV_ALL 100 0 0 0 TSCF230 Other adj. for reconcile profit(loss) -100 0 100 0 0 0 0 TSCF200 Adjustments for reconcile profit (loss) -100 0 100 0 0 0 0 TSCF300 Net cash flows from (used in) operating activities 0 0 0 0 0 0 0 SCF4810 Dividend received 100 100 0 100 TSCF400 Net cash flows from (used in) investing activities 100 0 0 0 100 0 100 SCF5500 Dividend paid 0 0 0 0 0 TSCF500 Net cash flows from (used in) financing activities 0 0 0 0 0 0 0 TSCF700 Net increase (decrease) in cash and cash equivalents 100 0 0 0 100 0 100 (1) Elimination triggered for all entities / partners 4.2.7. Elimination of Capital Increase / Decrease A specific rule has been created to manage the impact of capital increase / decrease in the SCF named 0_ISSUE_SHARE. This elimination is based on the declaration by partner entered in account SCF5100 - Proceeds from issuing shares" (applies only for entities consolidated using the full or proportionate method). Example: B increases its capital by 1000. A owns 80% of B and subscribes for 800 INPUT Reclassification All Audit IDS Partner A B Rule A B A B Group SCF420B Purchase of short term investment and investment securities B -800 0_ISSUE_SHARE 800-800 800 0 TSCF400 Net cash flows from (used in) investing activities -800 0 0 800-800 800 0 SCF5110 Proceeds from issuing shares (1) A 800 0_ISSUE_SHARE -800 0 0 SCF5110 Proceeds from issuing shares TP-999 200 200 200 TSCF500 Net cash flows from (used in) financing activities 0 1,000 0-800 0 200 200 TSCF700 Net increase (decrease) in cash and cash equivalents -800 1,000 0 0-800 1,000 200 (1) Elimination based on B declaration for partner A. B full consolidated 4.2.8. Calculation of Non-Controlling Interests in the Net Income The calculations triggered by the NCI_xxx rules for the Actual version apply. 5. Controls Controls specific to the Annual Budget version are set up to check the quality of reported data at local level (entity by entity). They are grouped together in a dedicated set of controls named 0BA Set of controls for annual budget. Three types of controls are provided in the starter kit. Controls for balance analysis (named 0BA_Axxxx) that check the consistency of the statement of Cash flows accounts versus IS. These controls are broken down by Audit ID to ensure the consistency of each input level and apply to the following accounts: SCF1000 Profit (loss) SCF2010 Adjustments for income tax expense SCF2020 Adjustments for finance costs SCF4810 Dividend received P999T Net income (loss) P599T Tax P2120 Interest income + P2220 Interests expenses P2140 Dividend received 54
0BA_C1_02 control checks that the breakdown by partner of "SCF4810 Dividend received" in the statement of cash flows is equal to the breakdown of "P2140 Dividend received" in the P&L. Controls for interco analysis (named 0BA_Exxxx) check that the sum of interco amounts (I_ALL) is lower than the total amount (I_NONE). All these controls are defined using the standard Controls rules. They are assigned to the Blocking type. Therefore the control status is checked when the work status is changed in the Consolidation Monitor. 6. Reports Input forms and Reports are defined by using the EPM Office Add-in Excel. 6.1. Input Forms The Annual Budget data entry is performed using 2 input forms, located in the InputLibrary\BA folder: BA_Balance input form allows the end-user to enter Profit and Loss and Statement of Cash Flows data. BA_Intercompany input form allows the user to input details by intercompany for one account selected in the EPM Context bar. 6.1.1. Layout Structure 1- EXCEL SHEETS Input forms are organized around several excel sheets according to the type of financial data required and the frequency of data entry: one for P&L accounts (BA_PL), one for SCF accounts (BA_SCF). 55
2- EPM CONTEXT BAR In the input forms, the EPM Context is configured to avoid entering data in inconsistent data regions. As a consequence, only ENTITY, TIME, AUDIT ID dimensions (and ACCOUNT dimension in the case of IC input forms) are displayed in the EPM Context bar and can be selected. For the AUDIT ID dimension, only members under ALL_INPUT parent are consistent and enable either data input or local adjustments. In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members defining local data input environment: - VERSION = Version for which data is being entered - SCOPE = No Consolidation - CURRENCY = Local Currency - INTERCO = No Intercompany - MEASURE = YTD for Consolidation Model The ACCOUNT dimension is hidden except for the intercompany input form where breakdown by partner is declared account by account. 3- PAGE AXIS In the page axis, the title of the document displays the version and below, general settings defining data entry environment. A warning about SCF accounts calculations is inserted within the Statement of Cash Flows sheet due to the specific configuration of the associated formulas of these indicators. 4- SEVERAL REPORTS PER SHEET To facilitate Annual Budget data entry, forecast data from the previous year is provided as a reminder on the right part of the sheet. To do so, the sheet contains 2 reports with a master report to input Annual Budget data and another report which shares the row axis of the master report. Example of balance input form: Sheet Name Master report Report 2 BA_PL BA_SCF Name: Profit and Loss Input of P&L data for Annual Budget Name: Cash Flows Input of Cash Flows data for Annual Budget Name: F09 Reminder of P&L forecasted data Name: F09 Reminder of SCF forecasted data Accounts are defined in rows and versions and entry periods in columns. 6.1.2. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using parent members, base members, properties, or a combination of these. To ease the enhancement of the starter kit configuration, selections are dynamic so that new members will be automatically inserted in the forms provided that these members are assigned the correct parent member and properties. 56
ACCOUNT: The Profit and Loss accounts are displayed combining parent members selection and the UPROFILE property. This property (1GL, 2CONSO) enables to select general ledgers accounts (1GL) excluding accounts used for consolidation purpose (2CONSO). The BUDGET_INPUT property is used to select statement of cash flows accounts in the Balance input form. FLOW: Annual Budget data is entered and stored on the period to date flow (F10) as well as other budget and forecast versions. TIME: For period comparison, the member selection for the TIME dimension is defined using the Offset function. In this case, Forecast data from the previous year is displayed selecting: {Context(member), Member Offset -12}. VERSION: Selection for Annual Budget and F09 versions is static to ensure consistent data entry, meaning forms should be updated manually. 6.1.3. Read-only Data Forecast version (F09) is selected in the Read-Only data tab of the Report Editor so that it should not be modified. 6.1.4. Local Members In input forms, Local Members are used in the following cases: Purpose Local Member name Formula Apply to: To display the IC indicator as appropriate Intercompany =IF(EPMMemberProperty("Consoli dation",epmdim_current_mem BER(ACCOUNT), "ISINTERCO")="Y", "IC", "") BA_BALANCE.XL SX (master reports) To check that CCE at opening of Annual Budget equal to CCE at closing of Forecast N- 1 Control =IF(ISBLANK($G$42);"";IF($G$42= $E$40;"";"Check (SCF7100; BA) = (SCF7300; F09)")) BA_BALANCE.XL SX (SCF sheet/ F09 report) Empty columns or empty rows Separation column/ Separation row No formula To display a To be broken down row, which shows the difference between the total amount declared by partner and the account total Row Control =EPMMEMBER([INTERCO].[PARE NTH1].[I_NONE])- EPMMEMBER([INTERCO].[PARE NTH1].[I_ALL]) BA_INTERCOMP ANY.XLSX (master report) To indicate how to insert partner members within the sheet Insert Partner No formula Description: Right click to insert member BA_INTERCOMP ANY.XLSX (Account detail reports) 57
6.1.5. Formatting The EPM formatting sheets applying to input forms share the Hierarchy Level Formatting designed for Actual Version. However, for the Budget/Forecast versions, it is necessary to create distinct EPM formatting sheets in order to manage in the Dimension Member/Property Formatting: Specific formatting for reminders versions (in this case, Forecast data from the previous year) and visual controls Specific heading formatting (e.g. to display account in the page axis of intercompany input form) Statement of cash flows accounts calculations (balance input form) Some Statement of Cash Flows accounts can be automatically loaded from the data entered in the Profit and Loss accounts. To do so, underlying formulas are configured for each Annual Budget SCF item using the Content feature of the Use Section. This configuration allows storing SCF accounts formulas that will apply whatever the time period is. Moreover, it is coupled with cell protection (also activated at the sheet level) in order to avoid unfortunate formulas deletion. Calculated Statement of Cash Flows accounts are: - SCF1000 - Profit (loss) = [P999T - Net income (loss)] - SCF2010 - Adjustments for income tax expense = [P5010 - Income tax] + [P5020 - Deferred tax] - SCF2020 - Adjustments for finance costs = - [P2120 - Interest income] + [P2220 - Interest expenses] - SCF4810 - Dividends received = [P2140 Dividends] - SCF7300 - Cash and cash equivalents at end of period = [TSCF700 - Net increase (decrease) in cash and cash equivalents] + [SCF7100 - Cash and cash equivalents at beginning of period] + [SCF720B - Cash and cash equivalent at acquisition date (incoming)] 58
The extract of the EPM formatting sheet of the BA_BALANCE presented hereafter illustrates this. 1 4 3 2 5 1 1- REMINDER/ VISUAL CONTROLS In Row format, September forecast data will be displayed in grey for all elementary accounts. In Column format, the visual control defined in the Local Member of the September Forecast report is blank except for Cash and cash equivalents at end of period account. 2- STATEMENT OF CASH FLOWS ACCOUNTS CALCULATIONS Calculations of Statement of cash flows accounts of the Annual Budget are defined as (Content = =) referring to the BA_PL excel sheet. Be aware that these formulas should be updated insofar as the chart of accounts is enhanced. 59
3- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 4- SEPARATION COLUMN/ROW Blank empty column or empty row format is defined for separation columns or rows. 5- INTERCOMPANY Specific format is defined for Intercompany Local Member, which purpose is to display the IC indicator. 6.1.6. Sheet Options INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 60
6.2. Reports 6.2.1. List of Reports The starter kit provides 2 reports comparing Annual Budget N+1 with Actual N or with Forecast N. Folder Report name Reports\2 Corporate Budget and Forecast \ 10 Annual Budget BA N+1 vs Actual N (YTD 12 Months).xlsx BA N+1 vs F09 N (YTD 12 Months).xlsx 6.2.2. Layout Structure 61
1- EXCEL SHEETS Comparative reports contain 2 excel sheets, one for Profit and Loss and one for Statement of Cash Flows. 2- EPM CONTEXT BAR In comparative reports, the EPM Context bar is configured to display the consolidation to be queried, that is, the TIME, SCOPE, consolidation CURRENCY, as well as ENTITY (ALL_ENTITY for the Group) and AUDIT ID (ALL_AUDITID which corresponds to the Total Adjusted). In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members: - FLOW = Period to date (on which budget/forecast data is stored) - INTERCO = No Intercompany - MEASURE = Year To Date The ACCOUNT and VERSION dimensions are hidden as they are configured in the report. 3- PAGE AXIS The page axis corresponds to the title of the document and the type of indicators retrieved and shows below, the general settings used to query the report (Periodic measure, Total Parent Time, Entity, AuditID, No Intercompany). 4- SEVERAL REPORTS PER SHEET Comparative reports consist of comparing the current version to one or several relevant version/time pairs, highlighting the corresponding variance in value and percentage. To do so, the worksheet can rely on several reports depending on the type of account/flow pairs to retrieve combined with version/time pairs. The Profit and Loss worksheet, as shown in the example above, is built with 4 reports. - On the top side of the sheet, 2 reports (Profit and Loss- Actual, Profit and Loss Budget) allow to display the Net Income (loss) hierarchy of the previous year s Actual and of the Annual Budget. - At the bottom of the sheet, it is necessary to create 2 other reports (PL attributable Actual, PL attributable Budget) in order to manage dynamically the retrieval of the Profit (loss) attributable to owners of parent and to non-controlling interests, which are posted on separate accounts and flows (E1610 Retained earnings/ Flow F10 and E2010 NCI Reserves and Retained earnings/ Flow F10). The Statement of Cash Flows worksheet is built with 2 reports to compare the net variation of cash flows between the previous year s Actual and of the Annual Budget. 6.2.3. Members Selection To ease the enhancement of the starter kit configuration, selections are dynamic so that new members will be automatically inserted in the reports provided that these members are assigned the correct parent member and properties. 62
ACCOUNT: The Net income (loss) P999T hierarchy is selected and displays the Member and its Descendants. The Cash flows accounts are displayed selecting parent TSCF700 - Net income (decrease) in cash and cash equivalents (member and descendants), SCF7100 CCE at beginning of period, SCF720B CCE at acquisition date (incoming) and SCF7300 CCE at end of period. FLOW: Annual Budget data is entered and stored on the period to date flow (F10) as well as other budget and forecast versions. VERSION: Selection for Annual Budget and F09 versions is static in order to provide easy to handle reports, meaning forms should be updated manually. TIME: For period comparison, the member selection for the TIME dimension is defined using the Offset function. In this case, Actual data from the previous year is displayed selecting: {Context(member), Member Offset -12}. 6.2.4. Local Members In comparative reports, Local Members are used notably to calculate the variance between two versions (in value and percentage formats). 6.2.4.1. Profit and Loss worksheet It is necessary to define a specific formula based on the Type of account property of the accounts (income or expense type) to display the variance of expenses in a relevant way. Indeed, expenses are stored as positive amounts, but in the reports, they are displayed as negative amounts to make them easier to read. Example: Account Type of account Stored amount ACTUAL N BUDGET N+1 Variance formula P1110 -Revenue INC 600 500 500-600=-100 displayed as (100) P1120 Cost of sales EXP 400 300 (300-400)*-1=100 displayed as 100 Note: Separate formulas are configured in the report displaying Profit (loss) attributable to owners of parents/nci at the bottom of the page. Formulas are configured as follows (based on BA N+1 VS ACTUAL N (YTD 12 MONTHS).XLS report): Purpose Local Member name Formula Apply to report: Calculate the Profit and Loss variance between Annual Budget N+1 and Actual N Variation Actual =IF(EPMMemberProperty("Consolidatio n",epmdim_current_member(acc OUNT), "ACCTYPE")="INC", E15-D15, (E15-D15)*-1) Profit and Loss BUDGET Calculate the Profit and Loss variance in percentage between Annual Budget N+1 and Actual N Variation Actual % =IF(D15=0, "-", IF(EPMMemberProperty("Consolidation",EPMDIM_CURRENT_MEMBER(ACCO UNT), "ACCTYPE")="INC", (E15- D15)/D15, ((E15-D15)/D15)*-1)) Profit and Loss BUDGET 63
Calculate Profit (loss) attributable to owners of parents variance between Annual Budget N+1 and Actual N Variation Actual =E67-D67 PL attributable BUDGET Calculate Profit (loss) attributable to owners of parents variance in percentage between Annual Budget N+1 and Actual N Variation Actual % =IF(D67=0; "-"; (E67-D67)/D67) PL attributable BUDGET 6.2.4.2. Statement of Cash Flows worksheet Formulas used to calculate the variance of Statement of Cash Flows accounts between two versions are described in the following table based on BA N+1 VS ACTUAL N (YTD 12 MONTHS).XLS report. Purpose Local Member name Formula Apply to: Calculate the SCF variance between Annual Budget N+1 and Actual N Variation Actual =$E15-$D15 Statement of Cash Flows Calculate the SCF variance in percentage between Annual Budget N+1 and Actual N Variation Actual % =IF(D15=0, "-", IF(D15>0, (E15- D15)/D15, (D15-E15)/D15)) Statement of Cash Flows 6.2.5. Member Names In comparative reports, retained earnings and NCI Reserves and retained earnings names are customized: 64
6.2.6. Formatting Budget and Forecast comparative reports use a Standard EPM formatting sheet, which shares the Hierarchy Level Formatting designed for Actual Version. Local member format is configured in the Dimension Member/Property Formatting as follows: 2 3 1 1- VARIANCE AND PERCENTAGE FORMAT To display data in green or red color, the number format of the data cell is specified as: - [Color50]# ##0;[Red](# ##0) => Variation Actual - [Color50]+0%;[Red]-0% => Variation Actual % 2- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 3- SEPARATION COLUMN/ROW Blank empty column or empty row format is defined for separation columns or rows. 6.2.7. Sheet Options INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. 65
BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 7. Business Process Flows The starter kit provides 2 Business Process Flows (BPF) templates which cover the complete reporting cycle: 7.1. BPF for Data Entry 7.1.1. Process Settings The BPF for Annual Budget data entry is named 0BA Annual Budget Local. It is based on the following principles: The model is the Consolidation model. The dimensions Version and Time are selected to ensure there is only one data entry workflow per version/time pair. 7.1.2. Activities The BPF for Annual Budget data entry, as well as other versions, only have one activity for which the driven dimension, users and workspaces are defined. 7.1.2.1. Drive Dimension and Users The Driven Dimension is the Entity, for which all base members are selected, in order to have one data entry workflow per Entity. The Performer corresponds to the Work_Status_Entity_Owner property member of the Entity dimension. It allows configuring the mandatory data approval workflow which relies on the work status settings. Both performer and approver of data entry workflow are defined based on this property: o The user set as Entity_Owner of the entity (base level) is the performer. o The user set as Entity_Owner of the parent entity is the approver responsible for all entities attached to the parent. In addition to the data approval process, the BPF itself goes under different statuses until completion. Hence, a Reviewer is specified using the BPF_Entity_Reviewer attributes of the Entity dimension. 66
7.1.2.2. Workspaces The Performer and the Reviewer share the same workspace. The workspace is organized around steps (using hyperlinks), which are divided into sub-steps (using hyperlinks). As it deals with data entry process, some dimensions can be specified in the Target Context of most of the sub-steps in order to secure the data input: Version: Annual Budget Scope: No Consolidation Currency: Local Currency 7.2. BPF for Central tasks 7.2.1. Process Settings The BPF for Annual Budget central tasks (named 0BA Annual Budget Central) is based on the Consolidation model and on the Time dimension. 7.2.2. Activities This central workflow only has one activity assigned, for which the driven dimension, users and workspaces are defined. 7.2.2.1. Drive Dimension and Users The Driven Dimension is the Version: Annual Budget. The Performer corresponds to the Work_Status_Version_Owner property member of the Version dimension. 7.2.2.2. Workspaces The workspace includes a complete list of tasks defined as hyperlinks, namely: Preparatory tasks Intercompany reconciliation Consolidation process Reports 67
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT D. BM - MONTHLY BUDGET 1. Overview of the Process The Monthly Budget version (BM) is dedicated to report the Y+1 budget on a monthly basis. This monthly allocation allows comparing budget versus actual month by month. When reporting monthly budget, data can be entered either on Year-To-Date or Periodic basis. P&L data is entered monthly and SCF data is entered quarterly. As a consequence, this version supports both approaches for data collection. In any case, the consolidation is triggered on YTD data in the Consolidation Model. 1.1. Year-To-Date Approach When data is input on YTD basis, the Monthly Budget reporting cycle can be described as follows: 68
1.2. Periodic Approach When the Periodic approach is chosen, data is entered in a specific model (PERIODICENTRY Model PER) and the overall process can be schematized as follows: 2. Accounts Properties Same Chart of Accounts as for Annual Budget Same Account properties as for Annual Budget 3. Logic Scripts Logic Scripts are used in the Monthly Budget process to prepare data input environment and to perform consolidation calculations. 3.1. Year-To-Date Approach 3.1.1. BM_YTD Script This script is defined in the Consolidation Model. It is intended to populate the opening cash position of the Monthly Budget (SCF7100 Cash and cash equivalents at beginning of period / March Y) with Actual closing position Y-1 (SCF7300 Cash and cash equivalents at end of period" / December Y-1). 69
Time is configured dynamically in the script using: TIME_SET which is, as a pre-requisite, the March period of the current BM, TMVL 3 (-3,%TIME_SET%) which therefore corresponds to the December period of the previous year. The detailed script logic is available in appendix (see Appendix G.8). 3.1.2. BM_Consolidate Script This script, defined in the Consolidation Model, is organized into 2 steps: Step 1: calculate the net income of the period in the balance sheet (E1610 / F10). This calculation applies to P&L data coming from the PeriodicEntry Model for which the Flow dimension is not defined (for performance reasons) and as a consequence, contains an empty default logic script. Step 2: run conversion and consolidation programs for Monthly Budget. The script is based on standard programs (the same used for all versions) which can be triggered for the 12 periods of the year to be consolidated. The detailed logic script is available in appendix (see Appendix Error! Reference source not found.). 3.1.3. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 3.2. Periodic Approach 3.2.1. BM_PER Script The purpose of BM_PER script is to prepare data entry environment in the PeriodicEntry model. It is intended to: Copy the Annual Budget (BA) version from the Consolidation Model (YTD) to the PeriodicEntry Model (PER). In this part of the script, Time is configured with $TT$ 4 which, as a prerequisite, corresponds to the BA period to copy. Populate the opening cash position of Monthly Budget (SCF7100 Cash and cash equivalents at beginning of period / March Y) with Actual closing position Y-1 (SCF7300 Cash and cash equivalents at end of period / December Y-1). Time is configured using the following assumptions: o the Source Time (ST) = December Y-1 (refers to the last year closing period for the Actual cash closing position) o TMVL (3,$ST$) = March Y (which therefore corresponds to the March period of the Monthly Budget current year) The detailed logic script is available in appendix (see Appendix G.9). 3 TMVL=Time Level 4 TT= Target Time, ST= Source Time 70
3.2.2. BM_PER_TO_YTD Script The script BM_PER_TO_YTD is defined in the PeriodicEntry Model for Monthly Budget version. 3.2.2.1. Aggregate and transfer BM data to the Consolidation Model The script is intended to cumulate and transfer P&L data (monthly basis) and Cash Flows data (quarterly basis) from the PeriodicEntry model to the Consolidation Model. As a consequence, separated calculations are required for P&L accounts and SCF accounts. P&L accounts aggregations P&L accounts are identified by the property Group = ISA. To obtain YTD data, data is aggregated separately for each of the 12 periods (// curmonth, // Refmonth -1, // Refmonth -2 ), following the assumption that TIME_SET = December period of BM. Extract from BM_PER_TO_YTD script: This example shows how P&L data for the month of December is calculated. 1 2 1- Selection Data entered on P&L accounts from January (TMVL(-11,%TIME_SET%) to December (%TIME_SET) is selected. 2- Destination Selected data is registered on origin accounts on the single period of December (%TIME_SET). SCF accounts aggregations SCF accounts are identified by the property Group = CFA. To obtain YTD data, data is aggregated separately for each of the quarters, following the assumption that TIME_SET = December period of BM. 71
Extract from BM_PER_TO_YTD: this example shows how SCF data for the quarter of December is calculated. 1 2 1- Selection Data entered on SCF accounts for March (TMVL(-9,%TIME_SET%), June (TMVL(- 6,%TIME_SET%), September (TMVL(-3,%TIME_SET%) and December (%TIME_SET) is selected. 2- Destination Selected data is registered on origin accounts on the single period of December (%TIME_SET). 3.2.2.2. Transfer the account SCF7300 to the Consolidation Model The closing cash position (SCF7300) is transferred as such in the same quarters from the PeriodicEntry Model to the Consolidation Model as it is already cumulated data. Detailed logic scripts are available in appendix (see Appendix G.10 ). 3.2.3. BM_Consolidate Script Whatever data entry is, the BM_Consolidate script is used to perform the conversion and the consolidation (see description in the YTD Approach). The detailed logic script is available in appendix (see Appendix Error! Reference source not found.). 3.2.4. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 3.3. Associated Package The dedicated logic scripts used for Monthly Budget are run through the following packages: Logic script Package name Package Group YTD PER BM_YTD 3_1_Y BM YTD Preparatory package X BM_PER 3_1_P BM PER Preparatory package Consolidation \Financial processes X BM_CONSOLIDATE 3_2 BM Consolidate X X BM_PER_TO_YTD 1_1 BM_PER_TO_YTD PeriodicEntry \Financial processes X 72
4. Business Rules Same Business Rules as for Annual Budget Whatever the data entry choice is for monthly budget, data is consolidated within the Consolidation Model using common dedicated rules filtered for all budget and forecast versions. 5. Controls 5.1. Year-To-Date Approach Controls specific to the Monthly Budget version are set up to check the quality of reported data at local level (entity by entity). For YTD data entry, the set of controls to apply belongs to the Consolidation Model and is named 0BM_YTD - Set of controls for monthly budget entered in YTD. Three types of controls are provided in the starter kit. Controls for balance analysis (named 0BM_Axxxx) that check the consistency of the statement of Cash flows accounts versus IS. These controls are broken down by Audit ID to ensure the consistency of each input level and apply to the following accounts: SCF1000 Profit (loss) SCF2010 Adjustments for income tax expense SCF2020 Adjustments for finance costs SCF4810 Dividend received P999T Net income (loss) P599T Tax P2120 Interest income + P2220 Interests expenses P2140 Dividend received 0BM_C1_02 control checks that the breakdown by partner of "SCF4810 Dividend received" in the statement of cash flows is equal to the breakdown of "P2140 Dividend received" in the P&L statement. Controls for interco analysis (named 0BM_Exxxx). These controls check that the sum of interco amounts (I_ALL) is lower than the total amount (I_NONE). All these controls are defined using the standard Controls rules. They are assigned to the Blocking type. Therefore the control status is checked when the work status is changed in the Consolidation Monitor. Note that these controls can only be executed quarterly to be relevant in so far as Statement of Cash Flows data is input quarterly. 5.2. Periodic Approach For periodic data entry, the set of controls is the same as for the YTD approach. It is defined within the PeriodicEntry Model and is named 1BM_PER - Set of controls for monthly budget entered in PERIODIC. The only difference is about controls comparing Statement of Cash Flows accounts to P&L accounts (1BM_Axxxx, 1BM_Cxxxx). Indeed, these controls check that the amount entered quarterly for the SCF account is equal to the sum of what is entered during the quarter for the relevant P&L accounts. To obtain the sum of three months for P&L data, which would apply to all quarters, the control is based on the Period dimension (using the following syntax: 0=current month, -1=previous month.). Three rows are necessary to specify one period per row, which are then aggregated. 73
6. Reports Input forms and Reports are defined by using the EPM Office Add-in Excel. 6.1. Input Forms 6.1.1. Year-To-Date Approach The Monthly Budget data entry can be done using 2 input forms, stored in the InputLibrary\BM (YTD) folder of the Consolidation Model. BM_Balance_YTD input form allows the end-user to enter Profit and Loss and Statement of Cash Flows data. BM_Intercompany_YTD input form allows the user to input details by intercompany for one account selected in the EPM Context bar. 74
6.1.1.1. Layout Structure 1- EXCEL SHEETS Input forms are organized around several excel sheets according to the type of financial data required and the frequency of data entry. 2- EPM CONTEXT BAR In the input forms, the EPM Context is configured to avoid entering data in inconsistent data regions. As a consequence, only ENTITY, TIME, AUDIT ID dimensions (and ACCOUNT dimension in the case of IC input forms) are displayed in the EPM Context bar and can be selected. For the TIME dimension, the TOTAL parent member must be selected so that all the periods can expanse dynamically in columns in the input form. For the AUDIT ID dimension, only members under ALL_INPUT parent are consistent and enable either data input or local adjustments. In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members defining local data input environment: - VERSION = Version for which data is being entered - SCOPE = No Consolidation - CURRENCY = Local Currency 75
- INTERCO = No Intercompany - MEASURE = YTD for Consolidation Model The ACCOUNT dimension is hidden except for the intercompany input form where breakdown by partner is declared account by account. 3- PAGE AXIS In the page axis, the title of the document displays the version and below, general settings defining data entry environment (YTD measure, Total Parent Time, Entity, AuditID, No Intercompany). A warning about SCF accounts calculations is inserted within the BM_SCF sheet, due to the specific configuration of the associated formulas of these indicators. 4- SEVERAL REPORTS PER SHEET To facilitate Monthly Budget data entry, Annual Budget data is provided as a reminder on the right part of the sheet. To do so, the sheet contains 2 reports with a master report to input Monthly Budget data and another report which shares the row axis of the master report. Example of balance input form: Sheet Name Master report Report 2 BM_PL BM_SCF Name: Profit and Loss Input of P&L data for Monthly Budget Name: Cash Flows Input of Cash Flows data for Monthly Budget Name: BA Reminder of Annual Budget P&L data Name: BA Reminder of Annual Budget SCF data Accounts are defined in rows and versions and entry periods in columns. 6.1.1.2. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using parent members, base members, properties, or a combination of these. To ease the enhancement of the starter kit configuration, selections are dynamic so that new members will be automatically inserted in the forms provided that these members are assigned the correct parent member and properties. ACCOUNT: The Profit and Loss accounts are displayed combining parent members selection and the UPROFILE property. This property (1GL, 2CONSO) enables to select general ledgers accounts (1GL) excluding accounts used for consolidation purpose (2CONSO). The BUDGET_INPUT property is used to select Statement of Cash Flows accounts in the Balance input form. FLOW: Monthly Budget data is entered and stored on the period to date flow (F10) as well as other budget and forecast versions. TIME: For P&L accounts, months are displayed using the syntax {Context(TOTAL), Base Level}. 76
For SCF accounts, quarters are displayed combining the syntax {Context(TOTAL), Base Level} which selects all the months of the year and a filter based on the Base Period property which selects periods 003, 006, 009 and 012. VERSION: Selection of Monthly and Annual Budget versions is static to ensure consistent data entry, meaning forms should be updated manually. 6.1.1.3. Read-only Data Annual Budget version (BA) is selected in the Read-Only data tab of the BA Report Editor so that it should not be modified. 6.1.1.4. Local Members In input forms, Local Members are used in the following cases: Purpose Local Member name Formula Apply to: To display the IC indicator as appropriate Intercompany =IF(EPMMemberProperty("Consol idation",epmdim_current_me MBER(ACCOUNT), "ISINTERCO")="Y", "IC", "") BM_BALANCE_Y TD.XLSX (master reports) To check that Monthly Budget figures are equal to Annual Budget figures Control XLS Formulas which compare BM and BA on December period. BM_BALANCE_Y TD.XLSX (BA reports) Empty columns or empty rows Separation column/ Separation row No formula BM_BALANCE_Y TD.XLSX To display a To be broken down row, which shows the difference between the total amount declared by partner and the account total Row Control =EPMMEMBER([INTERCO].[PAR ENTH1].[I_NONE])- EPMMEMBER([INTERCO].[PARE NTH1].[I_ALL]) BM_INTERCOMP ANY_YTD.XLSX (master reports) To indicate how to insert partner members within the sheet Insert Partner No formula Description: Right click to insert member BM_INTERCOMP ANY_YTD.XLSX (Account detail reports) 6.1.1.5. Formatting The EPM formatting sheets applying to input forms share the Hierarchy Level Formatting designed for Actual Version. However, for the Budget/Forecast versions, it is necessary to create distinct EPM formatting sheets in order to manage in the Dimension Member/Property Formatting: Specific formatting for reminders versions (in this case, Annual Budget data) and visual controls Specific heading formatting (e.g. to display account in the page axis of intercompany input form) Statement of cash flows accounts calculations (balance input form) 77
Some Statement of Cash Flows accounts can be automatically loaded from the data entered in the Profit and Loss accounts. To do so, underlying formulas are configured for each Monthly Budget SCF item using the Content feature of the Use Section (in the Formatting sheet).this configuration allows storing SCF accounts formulas that will apply whatever the time period is. Moreover, it is coupled with cell protection (also activated at the sheet level) in order to avoid unfortunate formulas deletion. Closing cash position (SCF7300) is also calculated. The following Statement of Cash Flows accounts are calculated: - SCF1000 - Profit (loss) = [P999T - Net income (loss)] - SCF2010 - Adjustments for income tax expense = [P5010 - Income tax] + [P5020 - Deferred tax] - SCF2020 - Adjustments for finance costs = - [P2120 - Interest income] + [P2220 - Interest expenses] - SCF4810 - Dividends received = [P2140 Dividends] - SCF7300 - Cash and cash equivalents at end of period = [TSCF700 - Net increase (decrease) in cash and cash equivalents] + [SCF7100 - Cash and cash equivalents at beginning of period] + [SCF720B - Cash and cash equivalent at acquisition date (incoming)] SCF accounts are calculated separately for each quarter period using the Time Base Period property. SCF: Time Base Period property Base Period=003 Base Period=006 Base Period=009 Base Period=012 P&L: Reference month March June September December 78
The extract of the EPM formatting sheet of the BM_BALANCE_YTD presented hereafter illustrates this. 4 3 1 2 1- REMINDER/ VISUAL CONTROLS In Row format, Annual Budget data will be displayed in grey for all elementary accounts. 2- STATEMENT OF CASH FLOWS CALCULATIONS Calculations of Statement of cash flows accounts of the Monthly Budget are defined as (Content = =) referring to the BM_PL excel sheet. Be aware that these formulas should be updated insofar as the chart of accounts is enhanced. 3- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 4- SEPARATION COLUMN/ROW Blank empty column or empty row format is defined for separation columns or rows. 79
6.1.2. Sheet Options INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 6.1.3. Periodic Approach The Monthly Budget data entry is performed using 2 input forms, located in the InputLibrary\BM (PER) folder of the PeriodicEntry Model. BM_Balance_PER input form allows the end-user to enter Profit and Loss by month and Statement of Cash Flows data by quarter. BM_Intercompany_PER input form allows the user to input details by intercompany for one account selected in the EPM Context bar. 6.1.3.1. Layout Structure 1- EXCEL SHEETS Input forms are organized around several excel sheets according to the type of financial data required and the frequency of data entry. 80
2- EPM CONTEXT BAR In the input forms, the EPM Context is configured to avoid entering data in inconsistent data regions. As a consequence, only ENTITY, TIME, AUDIT ID dimensions (and ACCOUNT dimension in the case of IC input forms) are displayed in the EPM Context bar and can be selected. For the TIME dimension, the TOTAL parent member must be selected so that all the periods can expanse dynamically in columns in the input form. For the AUDIT ID dimension, only members under ALL_INPUT parent are consistent and enable either data input or local adjustments. In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members defining local data input environment: - VERSION = Version for which data is being entered - SCOPE = No Consolidation - CURRENCY = Local Currency - INTERCO = No Intercompany - MEASURE = PER for PeriodicEntry Model The ACCOUNT dimension is hidden except for the intercompany input form where breakdown by partner is declared account by account. 3- PAGE AXIS In the page axis, the title of the document displays the version and below, general settings defining data entry environment (Periodic measure, Total Parent Time, Entity, AuditID, No Intercompany). A warning about SCF accounts calculations is inserted within the BM_SCF sheet, due to the specific configuration of the associated formulas of these indicators. 4- SEVERAL REPORTS PER SHEET To facilitate Monthly Budget data entry, Annual Budget data is provided as a reminder on the right part of the sheet. To do so, the sheet contains 2 reports with a master report to input Monthly Budget data and another report which shares the row axis of the master report. Example of balance input form: Sheet Name Master report Report 2 BM_PL BM_SCF Name: Profit and Loss Input of P&L data, month by month for Monthly Budget Name: Cash Flows Input of Cash Flows data, quarter by quarter for Monthly Budget Name: BA Reminder of Annual Budget P&L data Name: BA Reminder of Annual Budget SCF data Accounts are defined in rows and versions and entry periods in columns. 81
6.1.3.2. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using parent members, base members, properties, or a combination of these. To ease the enhancement of the starter kit configuration, selections are dynamic so that new members will be automatically inserted in the forms provided that these members are assigned the correct parent member and properties. ACCOUNT: The Profit and Loss accounts are displayed combining parent members selection and the UPROFILE property. This property (1GL, 2CONSO) enables to select general ledgers accounts (1GL) excluding accounts used for consolidation purpose (2CONSO). The BUDGET_INPUT property is used to select Statement of Cash Flows accounts in the Balance input form. FLOW: No FLOW dimension in the PeriodicEntry Model. TIME: For P&L accounts, months are displayed using the syntax {Context(TOTAL), Base Level}. For SCF accounts, quarters are displayed combining the syntax {Context(TOTAL), Base Level} which selects all the months of the year and a filter based on the Base Period property which selects periods 003, 006, 009 and 012. VERSION: Selection of Monthly and Annual Budget versions is static to ensure consistent data entry, meaning forms should be updated manually. 6.1.3.3. Read-only Data Annual Budget version (BA) is selected in the Read-Only data tab of the BA Report Editor so that it should not be modified. 6.1.3.4. Local Members In input forms, Local Members are used in the following cases: Purpose Local Member name Formula Apply to: To display the IC indicator as appropriate Intercompany ==IF(EPMMemberProperty("Perio dicentry",epmdim_current_m EMBER(ACCOUNT), "ISINTERCO")="Y", "IC", "") BM_BALANCE_P ER.XLSX (master reports) To check that Monthly Budget figures are equal to Annual Budget figures Control The formula compares TOTAL BM to BA BM_BALANCE_P ER.XLSX (BA reports) Empty columns or empty rows Separation column/ Separation row No formula BM_BALANCE_P ER.XLSX To display a To be broken down row, which shows the difference between the total amount declared by partner and the account total Row Control =EPMMEMBER([INTERCO].[PAR ENTH1].[I_NONE])- EPMMEMBER([INTERCO].[PARE NTH1].[I_ALL]) BM_INTERCOMP ANY_PER.XLSX (master reports) 82
Purpose Local Member name Formula Apply to: To indicate how to insert partner members within the sheet Insert Partner No formula Description: Right click to insert member BM_INTERCOMP ANY_PER.XLSX (Account detail reports) 6.1.3.5. Formatting The EPM formatting sheets applying to input forms share the Hierarchy Level Formatting designed for Actual Version. However, for the Budget/Forecast versions, it is necessary to create distinct EPM formatting sheets in order to manage in the Dimension Member/Property Formatting: Specific formatting for reminders versions (in this case, Annual Budget data) and visual controls Specific heading formatting (e.g. to display account in the page axis of intercompany input form) Statement of cash flows accounts calculations (balance input form) Some Statement of Cash Flows accounts can be automatically loaded from the data entered in the Profit and Loss accounts. To do so, underlying formulas are configured for each Monthly Budget SCF item using the Content feature of the Use Section (in the Formatting sheet).this configuration allows storing SCF accounts formulas that will apply whatever the time period is. Moreover, it is coupled with cell protection (also activated at the sheet level) in order to avoid unfortunate formulas deletion. Closing cash position (SCF7300) is also calculated. The following Statement of Cash Flows accounts are calculated: - SCF1000 - Profit (loss) = [P999T - Net income (loss)] - SCF2010 - Adjustments for income tax expense = [P5010 - Income tax] + [P5020 - Deferred tax] - SCF2020 - Adjustments for finance costs = - [P2120 - Interest income] + [P2220 - Interest expenses] - SCF4810 - Dividends received = [P2140 Dividends] - SCF7300 - Cash and cash equivalents at end of period = [TSCF700 - Net increase (decrease) in cash and cash equivalents] + [SCF7100 - Cash and cash equivalents at beginning of period] + [SCF720B - Cash and cash equivalent at acquisition date (incoming)] SCF accounts are calculated separately for each quarter period using the Time Base Period property. SCF: Time Base Period property Base Period=003 Base Period=006 Base Period=009 Base Period=012 P&L: Reference month January, February, March April, May, June July, August, September October, November, December 83
The extract of the EPM formatting sheet of the BM_BALANCE_PER presented hereafter illustrates this. 4 1 3 2 1- REMINDER/ VISUAL CONTROLS In Row format, Annual Budget data will be displayed in grey for all elementary accounts. 2- STATEMENT OF CASH FLOWS CALCULATIONS Calculations of Statement of cash flows accounts of the Monthly Budget are defined as (Content = =) referring to the BM_PL excel sheet. Be aware that these formulas should be updated insofar as the chart of accounts is enhanced. 3- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 4- SEPARATION ROW Blank empty row format is defined for separation rows. 84
6.1.3.6. Sheet Options - INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. - BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 6.2. Reports 6.2.1. List of Reports Monthly Budget reports are all grouped together in the Consolidation Model, whatever the data input choice is. The starter kit provides the 3 following reports: Folder Reports\2 Corporate Budget and Forecast \ 20 Monthly Budget Report name BM vs BA.xlsx INITIAL BM N vs ACTUAL N-1 (YTD 12 Months).xlsx MONTHLY BUDGET.xlsx 6.2.2. Report configuration Same as Annual Budget reports 7. Business Process Flows The starter kit provides 4 Business Process Flows (BPF) templates which cover the complete Monthly Budget reporting cycle: - 0BM Monthly Budget Local PER - 0BM Monthly Budget Central PER - 0BM Monthly Budget Local YTD - 0BM Monthly Budget Central YTD Design principles are the same as Annual Budget BPFs. Note that the Monthly Budget Local PER BPF is based on the PeriodicEntry Model. Example: 85
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT E. F09 SEPTEMBER FORECAST 1. Overview of the process The September Forecast version (F09) is dedicated to corporate forecast. It is an update of the initial monthly budget at the end of September. As well as Monthly Budget, data can be entered either on Year-To- Date or Periodic basis (Month-To-Date and Quarterly-To-Date). As a consequence, this version supports both approaches. In any case, the consolidation is triggered on YTD data in the Consolidation Model. From a consolidation point of view, September Forecast data can be consolidated using two options implemented in the Starter kit: - Option 1 (F09): the consolidation process is performed on the F09 version, based on the December data. - Option 2 (F09TEC1): the consolidation process is performed on the F09TEC1 version. It consists first of consolidating Forecast data from October to December.and aggregating it to Actual data at the end of September. In any case, the consolidation process creates YTD data at the end of December. 1.1. Year-To-Date approach When data is input on YTD basis, the September Forecast reporting cycle can be described as follows: 86
1.2. Periodic approach Choosing the Periodic approach, data is entered in a specific model (PERIODICENTRY Model PER) and the overall process can be schematized as follows: 2. Specific Accounts properties Same Chart of Accounts as for Annual Budget Same Account properties as for Annual Budget 3. Logic Scripts Logic Scripts are used in the September Forecast process to prepare data input environment and to perform consolidation calculations. 3.1. Year-To-Date Approach 3.1.1. Copy Package To copy the Actual from January to September into the F09 version, the standard package Copy is used. 87
3.1.2. F09_Consolidate Script (Option 1) This script, defined in the Consolidation Model, is organized into 2 steps: Step 1: calculate the net income of the period in the balance sheet (E1610 / F10). This is done for P&L data coming from the PeriodicEntry Model for which the Flow dimension is not defined. Step 2: run conversion and consolidation programs for September Forecast (F09). The script is based on standard programs (the same used for all versions). The detailed logic script is available in appendix (see Appendix G.11). 3.1.3. F09TEC1_Consolidate Script (Option 2) The F09TEC1_Consolidate script runs conversion and consolidation programs for September Forecast. Note: in this script, the technical version F09TEC2 is used. It can be schematized as follows: Step 1: Calculate the December Quarter to Date data (Destination: F09TEC1) Step 2: Run conversion and consolidation program on the December Quarter to Date data (Dest: F09TEC1) Step 3: Aggregate the consolidated Forecast at the end of December (QTD) with the consolidated Actual at the end of September (YTD) (Dest: F09TEC2) Step 4: Clean F09TEC1 data (Dest: F09TEC1) Step 5: Copy consolidated data from F09TEC2 to F09TEC1 (Dest: F09TEC1) Detailed logic scripts are available in appendix (see Appendix G.12). 3.1.4. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 3.2. Periodic Approach 3.2.1. F09_PER Script This script is defined in the Consolidation Model. The objective is to transfer Actual data to the PeriodicEntry Model in order to facilitate the September Forecast data entry. The script is organized as follows: Populate the opening cash position of the September Forecast (SCF7100 Cash and cash equivalents at beginning of period / March Y) with Actual closing position Y-1 (SCF7300 Cash and cash equivalents at end of period" / December Y-1) 88
Populate the closing cash position of Actual for each quarter (March, June and September) Decumulate and copy the Actual data (January to September) from the Consolidation Model to the PeriodicEntry Model, distinguishing P&L accounts (monthly basis) and SCF accounts (quarterly basis) Time is configured using the following assumptions: As a pre-requisite, TIME_SET corresponds to the September period. TMLV(-x,%TIME_SET%) is used to select periods between January and August. Detailed logic scripts are available in appendix (see Appendix G.13). Accounts are selected using the properties SENDTOBUDGET=Y and Group=ISA or CFA. 3.2.2. F09_Q4_FROM_BM Script This script is defined in the PeriodicEntry Model. The objective is to populate the last quarter of the September Forecast with Monthly Budget data, on a monthly basis for P&L accounts and on a quarterly basis for SCF accounts. Time is configured using the following assumptions: As a pre-requisite, TIME_SET corresponds to the December period. TMLV(-1,%TIME_SET%) and TMLV(-2,%TIME_SET%) refers to the November and October periods. Detailed logic scripts are available in appendix (see Appendix G.14). 3.2.3. F09_PER_TO_YTD Script This script is defined in the PeriodicEntry Model. The objective is to aggregate Actual data and September Forecast data on a monthly basis for P&L accounts and on a quarterly basis for SCF accounts and then to transfer it from the PeriodicEntry Model to the Consolidation Model. The script is organized as follows: Step 1: perform P&L monthly calculations Step 2: perform SCF quarterly calculations Step 3: copy the opening cash position (SCF7100) of the Actual at the end of September into each quarter of September Forecast (F09) Step 4: for March, June and September, copy the closing cash position of Actual into F09; For December, copy the closing cash position of September Forecast in itself and transfer it to the Consolidation Model. Time is configured using the following assumptions: As a pre-requisite, TIME_SET corresponds to the December period. TMLV(-x,%TIME_SET%) refers to periods between January and November. Detailed logic scripts are available in appendix (see Appendix G.15). 3.2.4. F09/F09TEC1_Consolidate Scripts Same scripts as for the YTD Approach. Detailed logic scripts are available in appendix (see Appendix G.11 &G.12). 3.2.5. ICMatching Scripts The ICMatching scripts are defined Chapter A.3.2.2. The detailed logic script is available in appendix (see Appendix G.17 and G.18). 89
3.3. Associated Package The dedicated logic scripts used for September Forecast are run through the following packages: Logic script Package name Package Group YTD PER F09_PER 5_1_P F09 PER Preparatory package X F09_CONSOLIDATE 5_2 F09 Consolidate Consolidation \Financial processes X X F09TEC1_CONSOLIDATE 5_2 F09TEC1 Consolidate X X F09_Q4_FROM_BM 2_1 F09 PER Populate with BM PeriodicEntry \Financial X F09_PER_TO_YTD 2_2 F09_PER_TO_YTD processes X 4. Business Rules Same Business Rules as for Annual Budget Whatever the data entry choice is for September Forecast, data is consolidated within the Consolidation Model using common dedicated rules filtered for all budget and forecast versions. 5. Controls 5.1. Year-To-Date Approach Controls specific to the September Forecast version are set up to check the quality of reported data at local level (entity by entity). For YTD data entry, the set of controls to apply belongs to the Consolidation Model and is named 0F9_YTD - Set of controls for Forecast Data of September entered in YTD. Three types of controls are provided in the starter kit. Controls for balance analysis (named 0F9_Axxxx) that check the consistency of the statement of Cash flows accounts versus IS. These controls are broken down by Audit ID to ensure the consistency of each input level and apply to the following accounts: SCF1000 Profit (loss) SCF2010 Adjustments for income tax expense SCF2020 Adjustments for finance costs SCF4810 Dividend received P999T Net income (loss) P599T Tax P2120 Interest income + P2220 Interests expenses P2140 Dividend received 0F9_C1_02 control checks that the breakdown by partner of "SCF4810 Dividend received" in the statement of cash flows is equal to the breakdown of "P2140 Dividend received" in the P&L statement. Controls for interco analysis (named 0F9_Exxxx). These controls check that the sum of interco amounts (I_ALL) is lower than the total amount (I_NONE). All these controls are defined using the standard Controls rules. They are assigned to the Blocking type. Therefore the control status is checked when the work status is changed in the Consolidation Monitor. Note that these controls can only be executed quarterly to be relevant in so far as Statement of Cash Flows data is input quarterly. 90
5.2. Periodic Approach For periodic data entry, the set of controls is the same as for the YTD approach. It is defined within the PeriodicEntry Model and is named 1F9_PER - Set of controls for Forecast Data of September entered in PERIODIC. The only difference is about controls comparing Statement of Cash Flows accounts to P&L accounts (1F9_Axxxx, 1F9_Cxxxx). Indeed, these controls check that the amount entered quarterly for the SCF account is equal to the sum of what is entered during the quarter for the relevant P&L accounts. To obtain the sum of three months for P&L data, which would apply to all quarters, the control is based on the Period dimension (using the following syntax: 0=current month, -1=previous month.). Three rows are necessary to specify one period per row, which are then aggregated. 6. Reports Input forms and Reports are defined by using the EPM Office Add-in Excel. 6.1. Input Forms 6.1.1. Year-To-Date Approach The September Forecast data entry can be done using 2 input forms, stored in the InputLibrary\F09 (YTD) folder of the Consolidation Model. F09_Balance_YTD input form allows the end-user to enter Profit and Loss and Statement of Cash Flows data for December. The first quarters are displayed as reminder of Actual data. F09_Intercompany_YTD input form allows the user to input details by intercompany for one account selected in the EPM Context bar. 91
6.1.1.1. Layout Structure 1- EXCEL SHEETS Input forms are organized around several excel sheets according to the type of financial data required and the frequency of data entry. 2- EPM CONTEXT BAR In the input forms, the EPM Context is configured to avoid entering data in inconsistent data regions. As a consequence, only ENTITY, TIME, AUDIT ID dimensions (and ACCOUNT dimension in the case of IC input forms) are displayed in the EPM Context bar and can be selected. For the TIME dimension, the TOTAL parent member must be selected so that all the periods can expanse dynamically in columns in the input form. For the AUDIT ID dimension, only members under ALL_INPUT parent are consistent and enable either data input or local adjustments. 92
In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members defining local data input environment: - VERSION = Version for which data is being entered - SCOPE = No Consolidation - CURRENCY = Local Currency - INTERCO = No Intercompany - MEASURE = YTD for Consolidation Model The ACCOUNT dimension is hidden except for the intercompany input form where breakdown by partner is declared account by account. 3- PAGE AXIS In the page axis, the title of the document displays the version and below, general settings defining data entry environment (YTD measure, Total Parent Time, Entity, AuditID, No Intercompany). A warning about SCF accounts calculations is inserted within the F09_SCF sheet, due to the specific configuration of the associated formulas of these indicators. 4- ONE REPORT PER SHEET To facilitate September Forecast data entry on the last quarter, data from January to September is provided as a reminder on the left part of the sheet. It corresponds to Actual data copied on the F09 version, same periods, which allows then to consolidate the September Forecast for the whole year. From a configuration point of view, the input form is simpler than others. It only requires displaying a single version F09 within the master report. Example of balance input form: Sheet Name F09_PL F09_SCF Master report Name: Profit and Loss Input of P&L data for Monthly Budget Name: Cash Flows Input of Cash Flows data for Monthly Budget Accounts are defined in rows and versions and entry periods in columns. 6.1.1.2. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using parent members, base members, properties, or a combination of these. To ease the enhancement of the Starter kit configuration, selections are dynamic so that new members will be automatically inserted in the forms provided that these members are assigned the correct parent member and properties. ACCOUNT: The Profit and Loss accounts are displayed combining parent members selection and the UPROFILE property. This property (1GL, 2CONSO) enables to select general ledgers accounts (1GL) excluding accounts used for consolidation purpose (2CONSO). Parent TSCF700 and SCF7xxx members are used to select Statement of Cash Flows accounts in the Balance input form. 93
FLOW: September Forecast data is entered and stored on the period to date flow (F10) as well as other budget and forecast versions. TIME: For P&L accounts, months are displayed using the syntax {Context(TOTAL), Base Level}. For SCF accounts, quarters are displayed combining the syntax {Context(TOTAL), Base Level} which selects all the months of the year and a filter based on the Base Period property which selects periods 003, 006, 009 and 012. VERSION: F09 version is selected in the Report Editor to ensure consistent data entry, meaning forms should be updated manually. 6.1.1.3. Local Members In input forms, Local Members are used in the following cases: Purpose Local Member name Formula Apply to: To display the IC indicator as appropriate Intercompany =IF(EPMMemberProperty("Consol idation",epmdim_current_me MBER(ACCOUNT), "ISINTERCO")="Y", "IC", "") F09_BALANCE_ YTD.XLSX Empty columns or empty rows Separation column/ Separation row No formula F09_BALANCE_ YTD.XLSX To display a To be broken down row, which shows the difference between the total amount declared by partner and the account total Row Control =EPMMEMBER([INTERCO].[PAR ENTH1].[I_NONE])- EPMMEMBER([INTERCO].[PARE NTH1].[I_ALL]) F09_INTERCOM PANY_YTD.XLSX (master reports) To indicate how to insert partner members within the sheet Insert Partner No formula Description: Right click to insert member F09_INTERCOM PANY_YTD.XLSX (Account detail reports) 6.1.1.4. Formatting The EPM formatting sheets applying to input forms share the Hierarchy Level Formatting designed for Actual Version. However, for the Budget/Forecast versions, it is necessary to create distinct EPM formatting sheets in order to manage in the Dimension Member/Property Formatting: o Specific formatting for reminders of previous data periods (in this case, data from January to September) o Specific formatting for Actual SCF accounts which cannot be entered in the Forecast format. o Specific heading formatting (e.g. to display account in the page axis of intercompany input form) o Statement of cash flows accounts calculations (balance input form) Some Statement of Cash Flows accounts can be automatically loaded from the data entered in the Profit and Loss accounts. To do so, underlying formulas are configured for each SCF item using the Content feature of the Use Section (in the Formatting sheet).this configuration allows storing SCF accounts formulas that will apply whatever the time period is. Moreover, it is coupled with cell 94
protection (also activated at the sheet level) in order to avoid unfortunate formulas deletion. Closing cash position (SCF7300) is also calculated. The following Statement of Cash Flows accounts are calculated: - SCF1000 - Profit (loss) = [P999T - Net income (loss)] - SCF2010 - Adjustments for income tax expense = [P5010 - Income tax] + [P5020 - Deferred tax] - SCF2020 - Adjustments for finance costs = - [P2120 - Interest income] + [P2220 - Interest expenses] - SCF4810 - Dividends received = [P2140 Dividends] - SCF7300 - Cash and cash equivalents at end of period = [TSCF700 - Net increase (decrease) in cash and cash equivalents] + [SCF7100 - Cash and cash equivalents at beginning of period] + [SCF720B - Cash and cash equivalent at acquisition date (incoming)] SCF accounts are calculated for the december period using the Time Base Period property. SCF: Time Base Period property P&L: Reference month Base Period=012 December The extract of the EPM formatting sheet of the F09_BALANCE_YTD presented hereafter illustrates this. 4 3 1 2 1 1- REMINDERS / READ-ONLY SCF ACCOUNTS In Row format, Actual data from beginning of the year to September is displayed in grey for all elementary accounts. The expression selects the Time Base Period between 001 and 009. For the December period, Actual SCF accounts, which are not relevant for the Forecast data entry, are displayed in grey combining Account Properties: GROUP = CFA and BUDGET_INPUT = EMPTY Closing Cash Positions of March, June and September are displayed in grey using Time Base Period between 003 and 009. 2- STATEMENT OF CASH FLOWS CALCULATIONS Calculations of Statement of cash flows accounts of the September Forecast are defined as (Content = =) referring to the F09_PL excel sheet. Be aware that these formulas should be updated insofar as the chart of accounts is enhanced. 3- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 95
4- SEPARATION COLUMN/ROW Blank empty column or empty row format is defined for separation columns or rows. 6.1.1.5. Sheet Options INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 6.1.2. Periodic approach The September Forecast data entry is performed using 2 input forms, located in the InputLibrary\F09 (PER) folder of the PeriodicEntry Model. F09_Balance_PER input form allows the end-user to enter Profit and Loss by month and Statement of Cash Flows data for the last quarter. F09_Intercompany_PER input form allows the user to input details by intercompany for one account selected in the EPM Context bar. 96
6.1.2.1. Layout Structure 1- EXCEL SHEETS Input forms are organized around several excel sheets according to the type of financial data required and the frequency of data entry. 2- EPM CONTEXT BAR In the input forms, the EPM Context is configured to avoid entering data in inconsistent data regions. As a consequence, only ENTITY, TIME, AUDIT ID dimensions (and ACCOUNT dimension in the case of IC input forms) are displayed in the EPM Context bar and can be selected. For the TIME dimension, the TOTAL parent member must be selected so that all the periods can expanse dynamically in columns in the input form. For the AUDIT ID dimension, only members under ALL_INPUT parent are consistent and enable either data input or local adjustments. 97
In the EPM - Context Options menu, the Context Lock tab is defined at Workbook Level and sets to Hide and Lock statuses the following members defining local data input environment: - VERSION = Version for which data is being entered - SCOPE = No Consolidation - CURRENCY = Local Currency - INTERCO = No Intercompany - MEASURE = PER for PeriodicEntry Model The ACCOUNT dimension is hidden except for the intercompany input form where breakdown by partner is declared account by account. 3- PAGE AXIS In the page axis, the title of the document displays the version and below, general settings defining data entry environment (Periodic measure, Total Parent Time, Entity, AuditID, No Intercompany). A warning about SCF accounts calculations is inserted within the Statement of Casf Flows sheet, given the specific configuration of the associated formulas of these indicators. 4- SEVERAL REPORTS PER SHEET To facilitate September Forecast data entry, Actual data is provided as a reminder on the left part of the sheet. To do so, the sheet contains 2 reports with a master report reminding Actual data from January to September and another report to input September Forecast data. Example of balance input form: Sheet Name Master report Report 2 Profit and Loss Statement of Cash Flows Name: Profit and Loss Reminder of Actual P&L data Name: Cash Flows Reminder of Actual SCF data Name: Forecast Input of P&L data, month by month for Forecast version Name: F09 Input of Cash Flows data, quarter by quarter for Forecast version Accounts are defined in rows and versions and entry periods in columns. 6.1.2.2. Members Selection Dimension members are selected in the input forms using the Member Selector features. The selections are defined using parent members, base members, properties, or a combination of these. To ease the enhancement of the Starter kit configuration, selections are dynamic so that new members will be automatically inserted in the forms provided that these members are assigned the correct parent member and properties. ACCOUNT: The Profit and Loss accounts are displayed combining parent members selection and the UPROFILE property. This property (1GL, 2CONSO) enables to select general ledgers accounts (1GL) excluding accounts used for consolidation purpose (2CONSO). TSCF700 parent (Member and Descendants) and accounts SCF7xxx are used to select Statement of Cash Flows accounts in the Balance input form. 98
FLOW: No FLOW dimension in the PeriodicEntry Model. TIME: For P&L accounts, months are displayed combining the syntax {Context(TOTAL), Base Level} which selects all the months of the year and a filter based on the Base Period property: - between 001 and 009 for Actual data - between 010 and 012 for Forecast data For SCF accounts, quarters are displayed combining the syntax {Context(TOTAL), Base Level} which selects all the months of the year and a filter based on the Base Period property which selects periods 003, 006, 009 and 012. VERSION: Selection of Actual and September Forecast versions is static to ensure consistent data entry, meaning forms should be updated manually. 6.1.2.3. Read-only data ACTUAL version is selected in the Read-Only data tab of the Master Report Editor so that it should not be modified. 6.1.2.4. Local Members In input forms, Local Members are used in the following cases: Purpose Local Member name Formula Apply to: To display the IC indicator as appropriate Intercompany ==IF(EPMMemberProperty("Perio dicentry",epmdim_current_m EMBER(ACCOUNT), "ISINTERCO")="Y", "IC", "") F09_BALANCE_ PER.XLSX (master reports) Empty columns or empty rows Separation column/ Separation row No formula F09_BALANCE_ PER.XLSX To display a To be broken down row, which shows the difference between the total amount declared by partner and the account total Row Control =EPMMEMBER([INTERCO].[PAR ENTH1].[I_NONE])- EPMMEMBER([INTERCO].[PARE NTH1].[I_ALL]) F09_INTERCOM PANY_PER.XLS X (master reports) To indicate how to insert partner members within the sheet Insert Partner No formula Description: Right click to insert member F09_INTERCOM PANY_PER.XLS X (Account detail reports) 6.1.2.5. Formatting The EPM formatting sheets applying to input forms share the Hierarchy Level Formatting designed for Actual Version. However, for the Budget/Forecast versions, it is necessary to create distinct EPM formatting sheets in order to manage in the Dimension Member/Property Formatting: o Specific formatting for reminders versions (in this case, Actual data) o Specific heading formatting (e.g. to display account in the page axis of intercompany input form) 99
o Statement of cash flows accounts calculations (balance input form) Some Statement of Cash Flows accounts can be automatically loaded from the data entered in the Profit and Loss accounts. To do so, underlying formulas are configured for each September Forecast SCF item using the Content feature of the Use Section (in the Formatting sheet).this configuration allows storing SCF accounts formulas that will apply whatever the time period is. Moreover, it is coupled with cell protection (also activated at the sheet level) in order to avoid unfortunate formulas deletion. Closing cash position (SCF7300) is also calculated. The following Statement of Cash Flows accounts are calculated: - SCF1000 - Profit (loss) = [P999T - Net income (loss)] - SCF2010 - Adjustments for income tax expense = [P5010 - Income tax] + [P5020 - Deferred tax] - SCF2020 - Adjustments for finance costs = - [P2120 - Interest income] + [P2220 - Interest expenses] - SCF4810 - Dividends received = [P2140 Dividends] - SCF7300 - Cash and cash equivalents at end of period / December = [SCF7100 - Cash and cash equivalents at beginning of period / March] + [TSCF700 - Net increase (decrease) in cash and cash equivalents / March, June, September, December] + [SCF720B - Cash and cash equivalent at acquisition date (incoming)/ December] SCF accounts are calculated separately for the last quarter period using the Time Base Period property. SCF: Time Base Period property P&L: Reference month Base Period=012 October, November, December The extract of the EPM formatting sheet of the F09_BALANCE_PER presented hereafter illustrates this. 4 1 3 2 1- REMINDER/ NON-RELEVANT DATA 100
In Row format, Actual data is displayed in grey for all elementary accounts. For the December period, Actual SCF accounts, which are not relevant for the Forecast data entry, are displayed in grey combining Account Properties: GROUP = CFA and BUDGET_INPUT = EMPTY. Opening Cash Position is displayed for March. For other periods, the cells are blank using Time Base Period different from 003. 2- STATEMENT OF CASH FLOWS CALCULATIONS Calculations of Statement of cash flows accounts of the September Forecast are defined as (Content = =) referring to the Profit and Loss excel sheet. Be aware that these formulas should be updated insofar as the chart of accounts is enhanced. 3- NUMBER FORMAT The number format between brackets is defined for all accounts whose Account Type property = EXP. 4- SEPARATION COLUMN/ROW Blank empty column or empty row format is defined for separation columns or rows. 6.1.2.6. Sheet Options INTERCOMPANY Input Form: to enable the insertion of new intercompany members by the user, the EPM function Activate Member Recognition is selected in the Sheet Options. BALANCE Input Form: to avoid cell formulas being removed, the Statement of Cash Flows sheet is protected. Password is one Space. 6.2. Reports 6.2.1. List of Reports September Forecast reports are all grouped together in the Consolidation Model, whatever the data input choice is. The starter kit provides the 3 following reports: Folder Reports\2 Corporate Budget and Forecast \ 40 Forecast Report name FORECAST N BY ENTITY.xlsx FORECAST N vs ACTUAL N-1 VS BM N (YTD 12 Months).xlsx FORECAST N vs ACTUAL N-1 VS BM N (YTD 12 Months).xlsx 6.2.2. Reports Configuration Same as Annual Budget reports Note: In these reports, the version is not hardcoded so that reports can be run either with F09 or F09TEC1. 101
7. Business Process Flows The Starter kit provides 6 Business Process Flows (BPF) templates which cover the complete September Forecast reporting cycle: Data entry Year to date approach / 0F09 Forecast Local YTD Periodic approach / 0F09 Forecast Local PER Consolidation option 1 0F09 Forecast Central YTD 0F09 Forecast Central PER Consolidation option 2 0F09TEC1 Central YTD 0F09TEC1 Central PER Design principles are the same as Annual Budget BPFs. Note that the September Forecast Local PER BPF is based on the PeriodicEntry Model. Example: 102
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT F. BM_AR - MONTHLY BUDGET AT ACTUAL RATE 1. Overview of the process The objective of the BM_AR Monthly Budget at Actual Rate version is to store consolidated Monthly Budget data revised at the current Actual rates in order to compare Monthly Budget data with Actual data. This mainly requires: the creation of the simulation version BM_AR that is assigned the simulation properties (FX_SOURCE_VERSION = BM, RATE_VERSION = BM_AR, OWN_VERSION= BM) the configuration in the rate input form (namely Actual rate and BM_AR rate input) of the Opening, Average and Closing rates. The opening rate is used to translate the opening cash position (SCF7100 account). 2. Logic Scripts 2.1. BM_AR Consolidate Logic Script This script runs conversion and consolidation programs for Monthly Budget at Actual Rate version. The script is based on standard programs (the same used for all versions) which can be triggered for the 12 periods of the year to be consolidated. Detailed logic script is available in appendix (see Appendix G.16). 2.2. Associated Package Logic script Package name Package Group BM_AR CONSOLIDATE 4_1 BM_AR Consolidate Consolidation \Financial processes 3. Business Process Flows As there is no data collection for this version, the Starter kit provides a BPF template, namely 0BMAR Actual Rates for BM, which applies at Group level. Design principles are the same as Annual Budget BPFs. Illustration: 103
STARTER KIT FOR US GAAP CONFIGURATION DESIGN DOCUMENT G. APPENDIX 1. Input form - Example of F15-Net Variation Control 2. Example of INPUTFLOWS Property Values ID Description INPUTFLOWS TBS Balance Sheet TA000 Total assets TA100 Non current assets TA110 Property, plant and equipment A1110 Lands and buildings F20 F30 F55 F00 F99 F05 F50 A1111 Lands and buildings, Dep. F25 F30 F55 F00 F99 F05 F50 A1112 Lands and buildings, Impair. F25 F30 F35 F00 F99 F05 F50 A1120 Tangible exploration and evaluation assets F20 F30 F55 F00 F99 F05 F50 A1121 Tangible exploration and evaluation assets, Dep. F25 F30 F55 F00 F99 F05 F50 A1122 Tang. exploration and evaluation assets, Impair. F25 F30 F35 F00 F99 F05 F50 A1130 Fixtures and fittings F20 F30 F55 F00 F99 F05 F50 A1131 Fixtures and fittings, Dep. F25 F30 F55 F00 F99 F05 F50 Note: In INPUTFLOWS property values, the flows that are discriminating for the account come first (orange) and common flows that are generally shared between all the accounts of a group come after (green). 104