Implementing SAP® Business Planning and Consolidation

Implementing SAP business planning and consolidation are the major capabilities of SAP HANA, and these features are what sets SAP HANA apart from other ERP systems. Business Planning and Consolidation, BPC, is the ability of the SAP HANA system to create models of future performance in a variety of business sectors.

This enables businesses to ” see” the outcome of deploying various business strategies by inputting current or projected data values and seeing the results in ” Real Time” projections.

This advanced speed and computational alacrity is a main advancement of the new SAP S/4 HANA cloud-based platform.

If an anticipated increase in the cost of a raw material is factored into a business model for a manufacturing enterprise, then the model can predict the impact the increased cost will have on demand and overall profitability.

The SAP BPC system can also draw upon ordering history, customer history, ordering patterns and other data points to predict demand for products and the expected cost of meeting the anticipated demand. This enables management to make the necessary changes in the business plan to meet the expected production levels.

While SAP business planning and consolidation tools are well suited to a manufacturing environment, the capabilities of this system are universal and can be applied to any industry from finance to logistics, to pharmaceuticals and food processing. In short, any industry that has a supply chain dynamic will benefit from SAP HANA tools.

This is Enterprise Resource Planning at its best.

What is the Scope of SAP Business Planning and Consolidation?

Understanding the scope of SAP BPC modules is vital to achieving their full benefit. Although most business analytical processes follow precise statistical models, SAP provides higher levels of repeatability than traditional statistical models. Additionally, by allowing different personnel at different levels in the enterprise to have access to the same data simultaneously leads to better decision making.

Some of the basic SAP BPC functions include:

1) Planning, budgeting, and forecasting.

2) Generate consolidated data reports and monitor changes in real-time.

3) Improve business process flow and manage workflow using best practices models.

4) Advanced reporting using custom reports.

5) Utilize pre-formatted standard reports.

Advanced SAP-BPC tasks:

1) Periodic system maintenance to keep pace with process changes in the organization.

2) Advanced security maintenance to protect sensitive data.

3) Ability to change reporting as business models evolve.

How is SAP Business Planning and Consolidation different from traditional reporting?

All business reporting is data based, and traditional reporting systems often rely on manual data gathering and entry procedures. This has inefficiencies and is also at risk if the data is not accurate or is outdated.

Forecasting processes fall into two major categories, qualitative and quantitative.

These have been the basic tools for many years, but they have limitations that cannot address the vast amounts of data needed to run a modern enterprise.

Qualitative analyses are most often used to make short-term predictions and depend on data gathered through market research or experts in the field.

The limiting factor is the dependence on opinions rather than hard data. Examples of hard data are sales histories based on records, the impact of interest rates on the purchase of manufactured goods and other recorded facts with specific numerical values.

Quantitative analyses are more fact-based and do include factors like interest rates, costs of basic commodities, GNP of a region or industry. This is a more reliable and predictable model for forecasting but still depends on manually gathering data and comparing models to make financial predictions, the growth potential of new products and other factors in risk management.

The Advantages of SAP Business Planning and Consolidation

SAP BPC gathers data every time there is a business activity whether it is the usage of a material, production of a component, demand for a product or thousands of other data points.

This gathering and storage of data is an ongoing process rather than a ” Snapshot” of a particular time frame. Once gathered, however, the data can be examined in any time frame needed and utilized in any of the BPC reporting tools.

These reports are presented in real time and draw data from all company-wide sources including financial, production and performance levels.

SAP HANA data storage is also cloud-based, which is more secure than traditional hardware-based storage systems.

Implementing a comprehensive ERP system like SAP HANA is a major business decision. The best solutions are found with companies that have the expertise to migrate an enterprise from older legacy systems to modern, integrated ERP systems. SAP provides support to new customers but also recognizes the need for on-site personnel to assist with the startup.

Protera Technologies, a global leader in full IT outsourcing for SAP centric organizations and is a highly respected firm specializing in SAP managed services, cloud hosting, and SAP HANA, S/4HANA migrations. Seeking the assistance of an experienced team is your best assurance for an optimized SAP environment. Their website is:

About Protera

Get in touch with the SAP technical experts at Protera Technologies, Inc. today, email or call (877) 707-7683

Protera Technologies, Inc., a global Total IT Outsourcing Services Provider for SAP-centric organizations, was formed in 1998 to provide comprehensive end-to-end IT solutions for customers with SAP at the core of their IT resources. Protera Technologies has capitalized on its unbeatable experiences with SAP to evolve into a pioneer of end-to-end Total IT Outsourcing Global Solutions that cover all IT needs of an organization. As one of only a few SAP Global Partners providing Total IT Outsourcing Global Solutions, Protera Technologies provides truly comprehensive solutions to organizations of every size.

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