BIM206

BIM206
Leveraging the SAP

SEM-BPS Planning Tool
to Do a Fully Integrated
Financial Statement
Contributing Speakers
Michele Chakmakian
Principle Financial Analyst, DTE Energy Inc.
Mustansir Saifuddin
Lead SEM/BI Consultant, Innovative Solution Partners

Inc.
© SAP AG 2006, SAP TechEd ’06 / BIM206 / 2

Learning Objectives
As a result of this workshop, you will understand:

The close integration of BPS with SAP Business Information
Warehouse, BCS, and SAP R/3
The definition of a robust data model – considering reporting,

retraction, data granularity, and master data requirements
Process Automation – using the right mix of variable and

characteristics relationship ABAP exits and fox formulas to perform
characteristics derivation and calculations
The utilization of the SAP Enterprise Portal front end to allow users to
access their planning layouts and the associated reports

Overview
BI, SEM, Portals Infrastructure, Project Timelines
Corporate Wide Planning Processes
Role of Business Planning and Simulation (BPS)
Use of Business Consolidation (BCS)
Reporting
Lessons Learned
Overview
DTE Energy Co. (NYSE: DTE) is a diversified energy company

involved in the development and management of energy-related
businesses and services nationwide
DTE Energy consists of the following business segments:

Utility Businesses
– Detroit Edison (electric)
– MichCon (natural gas).
Non-Utility Businesses
– Power & Industrial Projects
– Unconventional Gas Production
– Fuel Transportation & Marketing

Overview
DTE Energy businesses currently operates in 27 states with a

primary focus in Michigan
Key Facts*
Revenues $9.0 Billion
Net income $537 Million
Market cap $7.7 Billion
Assets $23 Billion
Employees 11,000
* Information from the 2005 annual report

Overview
Project EBS/DTE2
Scope
ECC 5.0 implementation across the different business units.
Modules being implemented: Finance, Controlling, Human
Resources, Sales and Distribution, and Supply Chain
Business Warehouse as the Enterprise Wide Datawarehouse
and reporting engine
Strategic Enterprise Management – This includes:
– Business Planning and Simulation – (BPS)
– Business Consolidations – (BCS)
Maximo – Work management systems integrated with ECC
5.0

Overview – Planning
Why BPS ?
One Tool to Serve Planning Needs
Standardized Processes
Work Based Planning using Standards
Data leveraged from SAP R/3
Fully Integrated Financial Statements
Automation where Possible

Overview – Planning
Critical Success Factors

Collaborative development of the Tool
Ownership of the Plan by Stakeholders
One Platform for Planning
Looking Beyond the Current Financial Model
Buy-In in Developing Work Based Standards

Overview – High Level Process View
Plan and Manage the Business

R
e
Financial Model - SEM/BPS
p
Global Assumptions o
r
Generate Budget Generate Forecast Extract Actuals Perform Consolidations t
I
Cost of Operations Capital
Revenue
Sales Asset Other Tax Prepare n
Allocations Treasury Balance
Mgmt
Sheet
Planning F/S g
Sales Forecast Labor Planning
Retrieve Data Store Data
Business Warehouse
Financials R/3
Sales and Human Supply Interfaces/
Distribution Resources Chain Bolt-On’s

Overview
Reporting
Lessons Learned
System Landscape

DTE’s BI, SEM And Enterprise Portals Infrastructure
Project team structure

SEM Project Lead – Michele Chakmakian
– Four business analysts for different planning applications
BPS Technical Lead – Mustansir Saifuddin
– Two BPS consultants
BCS
– One consultant and a business analyst
BW
– Supported data extraction and reporting requirements
The SEM and BW teams work closely towards a common goal

DTE’s BI, SEM and Enterprise Portals Infrastructure

Overview
Reporting
Lessons Learned
The following figure represents the different planning

subprocesses that feed into an Integrated Financial
Statement Plan

Headcount/Labor Planning
Headcount
Salary information by activity type
Capital Planning
All Capital Projects planned at
WBS level 3
Retraction of planned projects
into R/3
Asset Planning
Depreciation by Asset Class/Sub
class

Margin Planning
Revenues
Cost of Goods Sold
Treasury Planning
Long Term Debt
Interest
Equity
Operations Planning
Expenses
– By Work Breakdown
Structures (WBS) structures
– By Cost Element at a profit
center level
Corporate Tax Planning

Tax Expenses
Prepare Financial Statements Process

This process collects information from
all sub processes
Also allows for any adjustments at the
account level
Consolidations (BCS)
Once the financial statements are
ready plan data is then
consolidated using BCS

Overview
Reporting
Lessons Learned
Role of Business Planning And Simulation (BPS)
As part of the BPS implementation there were multiple planning

applications needed to be created, which in BPS terms translates
into different Planning Areas both Standard and Multiplanning:
The scope included both annual budgeting and monthly forecasting
processes
To facilitate the planning process the following approach was taken:
– Identify Global Assumptions – Items that can be defined for multiple
planning applications centrally. For example:
- Global time variables
- Escalation rates etc.
– Versioning Strategy – Provide three working versions for each of the
planning processes to mimic the different scenarios and provide a
final version that is copied to the Financial Statement

Planning Workbench – BPS0

Global Assumptions – To facilitate the

planning process certain parameters are set
Benefits Overhead Rates
by Central Planner
Working Days
Wage Escalation Rates

Labor Planning By Activity Types, e.g. Existing Headcount

– Analyst Additions/Deletions
– Electrician

Labor Planning By Activity Types, e.g.

– Analyst
– Electrician
Hourly Rate
Labor Cost
Planning Functions

Integration between Labor,

O&M and Capital Planning
Labor Planning process feeds
the straight time labor rate by
activity type into the Operations
and Maintenance (O&M) and
Capital Planning process
These rates are then utilized to
create work based standards at
the work breakdown structure
(WBS) level to calculate O&M
expenses and Capital spending
A report is then produced that
compares the available labor
pool against utilized labor in
O&M and Capital process

Capital Planning Process

and Retraction
This process is responsible
for budgeting/forecasting for
the future Capital Projects
Planning for this process is
done at a Project and Work
Breakdown Structure level for
each Profit Center
Once the plan is finalized in
BPS than the plan numbers
are Retracted to R/3

Retraction (Tips)
Make sure to check the
authorization of the RFC user id
that is used to connect to the
R/3 system
Maintain the sender structure
and the transfer rules
Reference SDN for detailed
weblog on Cost Center
Retraction

Margin Planning
Sales Volumes by Customer Class

Margin Planning
Rate Types by Customer Sub Class
Sales Revenues by Customer Sub

Class/Rate Types

Asset Planning
This process pulls budgeted/forecasted data for existing Assets
from R/3 via a standard delivered SAP report
A custom wrapper program was created to take the output from the
SAP report and load it to a custom table used as a data source to
feed BW
Once the data is loaded into BW basic cubes it is copied over to the
Asset planning cube as Existing Assets
All the new Capital projects are fed as incremental additions to Asset
planning process from the Capital plan

Assets Planning
This subprocess Plans
for:
– Fixed Assets
– Regulatory assets
– Nuclear
decommissioning and
– Securitization
Related balance sheet
and income statement
accounts are populated
from this subprocess
Nuclear Surcharge Revenue

is fed from the Margin
Planning subprocess

Treasury Planning Includes:

Long term/Short term Debt
Equity: Common Stocks, Dividends…

Financial
Statement
Planning Process
This process relies
on the preceding
planning processes
to provide Income
Statement and
Balance Sheet items
at the account level
This process also
facilitates planning
for certain entities at
the account level by
providing layouts
with revenue,
expense and other
balance sheet items

Planning Process Automation, by using:

User Exits:
– Variables
Single variable exit utilized to
resolve multiple time variables in
more than one planning area

Planning Process Automation, by using:

User Exits:
Characteristics derivation
– Characteristics Relationship exit utilized to resolve
different characteristics
values

Overview
Reporting
Lessons Learned
Utilization of BCS
Consolidate actuals and plan data using a common platform
Use versioning strategy to consolidate plan and actuals
Support Legal and Segment level consolidation
Create separate task hierarchy to support plan consolidation in the
monitor
Automate consolidation process by utilizing the batch program
UCBATCH00 to run for multiple periods in the future

Consolidation Monitor

Data Flow
Actuals data loaded from multiple sources both R/3 and non R/3 via
Data Stream
Plan data is loaded from BPS via Data Stream

Overview
Reporting
Lessons Learned
Reporting
Once Planning and Consolidation tasks are completed,

what’s next?
Reports
A robust reporting methodology is utilized to support BPS

and BCS reporting requirements:
All the planning data is datamarted on a monthly frequency into
basic cubes from transactional cubes. This helps improve the
performance of the reports
Multiproviders are used to support Actuals to Budget and
Forecast variance reporting requirements
The following slides illustrates reporting and portals approach

Reporting
BPS Reporting structure
Each sub process contains its own

set of reports to facilitate the
planning process
All the actuals were housed in the
basic cubes that were referenced in
the planning layouts
The same basic actuals cubes were
used in conjunction with the
planning transactional cubes and
the datamarted planned cubes in a
multiprovider setting to provide
reporting needs to the end users

Reporting
Financial Statement
Reports
Both Plan and Actual
data is presented via Multiprovider
Multiproviders Budget
Forecast
Datamart
Datamart
Plan data is consolidated
using BCS and then
datamarted in to the
basic cubes
Business Consolidation System (BCS)
Financial
Statement
Planning
cube

Portals
Portals is utilized as a
common frontend for
both R/3 and BW
Each user based on their
security role will be able to
access the information
required to perform their
job
The attached screenshot
displays a consolidated
income statement report
that belongs to a
consolidation user role
Based on the
reporting role in
BW

Portals
BPS users can

access their
planning applications
via the portal
Each Planning Sub
process contains
multiple Business
Server Pages (BSP’s)
All BSP’s are grouped
into different folders
depending on the sub
process
Business Server
Pages (BSP’s)

Overview
Reporting
Lessons Learned
Lessons Learned
Consider all the dependencies during a parallel implementation

where R/3, BW and SEM is being implemented altogether
Keep a tight integration between the BW and SEM teams. This
will ensure a robust data model and application design
identifying any gaps earlier in the process
Subject matter experts (SME’s) are very critical for a successful
BPS implementation
Use a common planning approach across the different business
units wherever possible. This will minimize future maintenance
needs

Summary
In Summary:
The requirements needs to be adequately defined in order to
build a robust planning and reporting application
The design aspects should take into account the inter-

dependencies between BW, BPS, BCS and R/3 since you are
working in a tightly integrated environment
BPS data modeling should utilize the right mix of planning

objects to simplify the planning process. For example:
Characteristics Relationships, User Exits, Fox formulas etc.
Use a common front end for your planning and reporting needs.
In the case of DTE, SAP Enterprise Portals was utilized to serve
that purpose

Further Information
Î Public Web:
www.sap.com
SAP Developer Network: www.sdn.sap.com Î xxx Î xxx
SAP Customer Services Network: www.sap.com/services/
Î Related SAP Education Training Opportunities

http://www.sap.com/education/
Î Related Workshops/Lectures at SAP TechEd ’06

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BIM206 - Leveraging The SAP SEM-BPS Planning Tool To Do A Fu

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Leveraging the SAP

Principle Financial Analyst, DTE Energy Inc.

Lead SEM/BI Consultant, Innovative Solution Partners

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 2

As a result of this workshop, you will understand:

 The definition of a robust data model – considering reporting,

 Process Automation – using the right mix of variable and

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 3

DTE Energy Co. (NYSE: DTE) is a diversified energy company

DTE Energy consists of the following business segments:

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 5

DTE Energy businesses currently operates in 27 states with a

* Information from the 2005 annual report

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 6

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 7

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 8

Critical Success Factors

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 9

Plan and Manage the Business

Retrieve Data Store Data

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 10

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 12

Project team structure

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 13

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 14

The following figure represents the different planning

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 16

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 17

Corporate Tax Planning

Prepare Financial Statements Process

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 19

As part of the BPS implementation there were multiple planning

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 21

Planning Workbench – BPS0

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 22

Global Assumptions – To facilitate the

Wage Escalation Rates

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 23

Labor Planning  By Activity Types, e.g.  Existing Headcount

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 24

Labor Planning  By Activity Types, e.g.

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 25

Integration between Labor,

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 26

Capital Planning Process

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 27

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 28

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 29

 Sales Revenues by Customer Sub

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 30

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 31

Nuclear Surcharge Revenue

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 32

Treasury Planning Includes:

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 33

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 34

Planning Process Automation, by using:

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 35

Planning Process Automation, by using:

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 36

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 38

© SAP AG 2006, SAP TechEd ’06 / BIM206 / 39

The definition of a robust data model – considering reporting,

Process Automation – using the right mix of variable and

Labor Planning By Activity Types, e.g. Existing Headcount

Labor Planning By Activity Types, e.g.

Sales Revenues by Customer Sub

Each sub process contains its own

Consider all the dependencies during a parallel implementation

The design aspects should take into account the inter-

BPS data modeling should utilize the right mix of planning