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Financial planning
Financial planning systems are often integrated into a network of planning systems, such as production, sales, HR and marketing planning. These systems interact and supply each other with important information. We are here to advise you and have been successfully integrating and optimizing planning systems at companies for years.
Financial planning
Financial planning is a very important part of strategic corporate management, where precision, adaptability and analytical depth are essential in order to develop sustainable business strategies and uncover growth potential. Companies are often confronted with the challenge of covering all areas of the company with their planning solutions and meeting all stakeholder requirements, especially regulatory requirements. Financial planning systems are often integrated into a network of planning systems, for example planning systems for production planning, sales planning, HR content planning or marketing activities. All of these planning systems often interact with each other and supply each other with important information.
Planning process in SAP
Requirements and components of the planning
An effective planning process is crucial to the overall success of any company. This process comprises several important aspects that ensure that planning is efficient and transparent. From precise data procurement and input to the careful processing and presentation of various plan statuses and the comprehensible preparation of plan values - every step plays a crucial role.
Below we explain the key requirements and components that are important for any planning application with SAP.
CALEO supports you in optimizing your planning processes and meeting the individual needs of your company.
- Data input
- Data processing
- Distributions
- Validations
- Simulations
- Versioning and comparability
- Traceability/audit trail
Data input is an important and central requirement of a planning system. This can be done in different ways - either by connecting to other planning systems via an automated interface, by uploading data or by manual input via data entry layouts. Larger planning applications usually integrate all three methods in order to ensure the most convenient way of data entry depending on the use case.
Data is often entered at a highly aggregated level or on just a section of the underlying data model, especially if it is entered manually. This serves the purpose of simplicity and the avoidance of input. However, in order to do full justice to the underlying data model, the missing dimensions often have to be created through derivations and inferences. This is usually done directly when the data is saved. Other types of processing involve determining and calculating further KPIs and data content on the basis of the data entered. This can range from simple reclassifications to complex programmed calculations. In addition to processing the data, data is often also written and transferred to other applications via transfer processes. These transfers then often contain further logic steps that transfer the data into the desired target format.
Distributions are a special type of data processing and are often used in planning systems. This usually involves the distribution of aggregated input data to an underlying level of detail based on certain reference schemas. For example, plan data entered at a node in a hierarchy can be distributed across the individual levels of the hierarchy based on the actual data distribution of the hierarchy branches below. There are various schemes that can be used here - in addition to the reference data approach, percentage distributions through to linear distributions are also possible.
Data quality is just as important for planning data as it is for actual data. Therefore, a central component of the requirements for a planning system is that data is checked for quality and permitted combinations as soon as it is entered and, in the event of a negative response to the rules created, an error is returned and the data is not even saved. The quality of the data is not only crucial in reporting, where it supports management decisions, but it is often decisive long before that, when calculations are made on the basis of the data and incorrect results would be calculated as a consequence of incorrect data. If we look at the area of external reporting, for example, where statutory regulations stipulate the processing of data, the quality of the data is of crucial importance when it comes to producing legally prescribed results.
Planning differs from actual reporting primarily in that it does not look at the past but forecasts the future. Of course, this always entails risks and uncertainties to which the recorded planning figures are subject. This often creates the need and requirement, especially in volatile environments, to calculate various scenarios (e.g. worst, best, realistic) and simulate their effects on the company as a whole. Simulation options allow the user to make different assumptions by flexibly entering certain triggers.
An important requirement for almost all planning systems is the ability to save different statuses. As a rule, companies often plan budgets for the current and future year iteratively throughout the year, which means that originally planned statuses can be revised and updated at a later date. A planning cycle usually takes place in stages, with the initially entered data being discussed and agreed at management level and changes being communicated. A plan therefore develops over a certain period of time until it is finalized. In all these cases, it must be guaranteed that the statuses are saved and/or frozen so that they can be compared later. This can be comparisons of different plan versions over years, but also different plan statuses of the same version for the same period.
Depending on the type of company and its obligation to publish company data, there is often a requirement for transparency and traceability of data input. Entries and changes to the data must be fully traceable and comply with regulatory requirements.
SAP products for planning
With its software solutions BPC embedded and SAP Analytics Cloud for Planning, SAP offers central tools in the area of financial planning that - in conjunction with on-premise BW/4HANA or the cloud-based SAP Datasphere - enable a coherent and comprehensive financial planning architecture. SAP BPC-embedded acts as a key component within the SAP BW/4HANA architecture for detailed planning tasks and company consolidation. It is characterized by a deep integration into the BW system, whereby planning and consolidation functions are seamlessly interwoven with data management. This not only brings performance benefits, but also makes optimum use of the strengths of the BW modeling framework.
In addition, the SAP Analytics Cloud for Planning enables an agile and user-centric planning environment in the cloud. With advanced data visualization capabilities, predictive analytics and machine learning functions, finance teams are able to make planning processes agile, create forecasts with greater precision and increase the quality of decisions. Real-time interaction promotes collaboration and accelerates the creation of planning scenarios based on solid, data-based insights.
In addition to or instead of on-premise data storage with BW/4HANA, SAP Datasphere acts as a cloud-based, central link for data orchestration that integratively combines data from different sources. By guaranteeing a uniform database for the entire company, SAP Datasphere ensures the quality and consistency of the data that is essential for reliable planning and reporting. Seamless planning will make it possible to push and manage data planned in the SAC into the Datasphere for storage. This guarantees a high level of data integration for both actual and planned data.
New!
The SAP Business Data Cloud will be available from February 2025. This solution combines the private cloud versions of BW 7.5 and BW/4 (SAP RISE) as well as BPC with the public cloud solutions Datasphere and SAP Analytics Cloud (SAC).
The product offers the option of implementing both embedded BPC solutions (based on BW 7.5 or BW/4) and seamless planning (based on Datasphere). This is done with a uniform look & feel, supported by a common SAC front end.
Another SAP planning tool in relation to planning is the product IBP (Integrated Business Planning) for production planning. SAP BI-IP is SAP's integrated planning solution which, embedded in BW, has now been merged into BPC-embedded. In addition to BPC-embedded, there is also the BPC standard solution, which is less flexible but covers the decentralized approach that allows a specialist department to create simple planning applications independently.
BPC embedded
SAC
BPC embedded & SAC via Live connection
SAC & Datasphere
IBP
Integration & island solution
Deep integration in BW but also island solution (workspaces)
Deep integration in BW, DS, S4 possible but also stand-alone solution
Deep integration in BW but also stand-alone solution
Allows seamless integration into DS but also island solution
Deep integration into the SCM module
Planning processes
Many planning functions according to operational business processes
Established planning functions with good documentation
Dataactions in a modern design
Dataactions in a modern design
Dataactions in a modern design
Analysis & self-service reporting
WebClient as Excel reporting as a long-standing standard solution
Modern WebClient
Modern WebClient
Modern WebClients and modern Excel add-in
AI
Scenario planning
Yes about Workspaces
Yes including definition of drivers and assumptions
Yes including definition of drivers and assumptions
Yes including definition of drivers and assumptions
Collaboration
Workflows & approval processes
License
Although SAP Financial Consolidation is still available in version 10.1, Standard Maintenance (maintenance of the product) has been discontinued as of December 31, 2027. We have extensive experience from numerous projects and can support you with all questions relating to SAP FC. In particular, we will be happy to assist you with a migration to one of SAP's successor products.
Which SAP solution is right for you?
Which SAP planning tool to choose is a very central question for entrepreneurs, as each tool also shapes the character of the planning processes to a certain extent. There is no universal solution, as every company pursues very individual goals with its planning process, which are usually very closely linked to the business model.
In order to make the right choice, an in-depth analysis is essential. CALEO is at your side as a specialized consulting firm and offers you comprehensive advice and expertise to identify the optimal solution for your company. By analyzing your specific requirements and existing systems, we create the basis for a well-founded decision that is tailored to your needs. We have put together some key questions to provide initial orientation and analysis. These are the starting point for a detailed examination of your initial situation and help you to find the right SAP planning tool for your company. Discover how CALEO can help you with more than just technical expertise - we offer customized solutions to meet your requirements and make your planning processes efficient and reliable.
How can SAP help to automate and optimize the financial planning process?
By automating forecasting and budgeting, optimizing planning and consolidation processes, improving transparency and traceability and providing advanced analysis and reporting capabilities, these tools help to increase efficiency and support informed decision-making. Integration with other systems and ensuring data quality also improve the overall performance and accuracy of the financial planning process.
Which SAP modules or solutions are best suited for creating a financial plan?
SAP BPC is ideal for an integrated solution that covers both financial planning and consolidation.
SAP Analytics Cloud (SAC) provides a comprehensive solution for planning, forecasting and analysis with strong visualization and reporting capabilities.
SAP IBP can be useful if you want to closely link financial planning with supply chain and operational planning.
SAP Datasphere offers advanced data management and integration capabilities that are useful for comprehensive and complex financial planning requirements.
Choosing the right SAP module or solution depends on your specific requirements, your IT infrastructure and the financial planning functionality you require. A detailed analysis of your needs and a discussion with a CALEO expert or consultant can help you find the best solution for your business.
How can SAP help to simplify the planning process and facilitate data exchange between the various planners?
SAP can significantly improve the standardization, overview and integration into the operational processes of planning processes. This makes the planning data traceable and enables meaningful plan/actual analyses to be created at the defined levels of comparability.
The central organization and integration into the operational systems makes the entire planning process more controllable and, above all, more streamlined.
What functions does SAP offer for the planning process?
Especially in planning processes with many participants, the coordination processes are often the ones that take up the most time and effort. Here, centrally organized approval and coordination processes can help to process questions asynchronously, document questions and comments in a comprehensible manner and enable transparent approval, e.g. via swipe. Agonizingly long coordination rounds and a ping-pong of numbers can thus be significantly reduced and enable efficient and timely processing.
Learning algorithms can also help to reduce many repetitive tasks, for example by generating automated default values.
Do you already have a BW system whose planning functionality is to move towards the public cloud in the future?
In this scenario, the SAP Business Data Cloud may be an option, which secures the use of existing investments in the BW 7.5 or BW/4 system (in the form of a private cloud license as part of SAP RISE) and at the same time includes the future public cloud setup with Datasphere and SAC. It is also possible to seamlessly integrate new AI and machine learning applications.
Financial planning in times of crisis
This white paper deals with the requirements for financial planning in uncertain times and shows how SAP solutions are suitable for these challenges.
SERVICE PORTFOLIO
OUR OFFER
With over two decades of experience in the implementation, further development and maintenance of SAP financial planning solutions and as consultants to the specialist area, we are at your side as a competent solution partner. Our comprehensive service portfolio offers customized solutions for companies of all sizes and industries.
Our expertise covers a wide range of SAP tools, including long-standing solutions such as SAP BW-IP and SAP BPC as well as the latest technologies based on SAP Analytics Cloud and Datasphere.
We support your company in effectively mastering complex requirements. Take advantage of our extensive knowledge and reliable support to master your specific challenges in the area of financial planning.
Our expertise offers you the following services, among others:
Enablement & software selection
CALEO supports you in the selection and implementation of customized SAP financial planning solutions. By comparing the various options according to your needs, we ensure that you find the best solution for your requirements. In addition, we offer coordinated sessions in advance to provide your project staff with targeted training and optimal preparation.
Conception & Design
Together with your IT and specialist department, CALEO develops a customized concept for the use of the selected solution. Our close cooperation and in-depth expertise guarantee that all relevant requirements are recorded and taken into account. The result is a turnkey design document that serves as a solid basis for the subsequent implementation.
Implementation & migration
CALEO is your reliable partner for the implementation of new SAP solutions and the migration of outdated systems to current platforms. Regardless of your chosen approach - greenfield, brownfield or bluefield - we offer comprehensive support and expertise. We ensure that the transition runs smoothly and that all existing data and processes are seamlessly integrated. Rely on our experience and expertise to make your SAP infrastructure future-proof and optimally tailored to your requirements.
Application Maintenance
CALEO offers comprehensive application maintenance for your SAP solution. Our service includes the continuous maintenance of existing functions, adaptations to new legal requirements and the implementation of new requirements. We also provide you with demand-oriented second and third-level support. In this way, we ensure that your systems always function optimally and remain up to date. Rely on CALEO to operate your financial planning solution efficiently and reliably.
Spot Consulting & Troubleshooting
CALEO offers you specialized spot consulting and troubleshooting services to quickly and efficiently resolve errors and performance problems in your running systems. Our experts are available to you at short notice to take targeted measures and restore your systems to optimum operating condition. With our in-depth specialist knowledge and tailored solutions, we ensure the stability and performance of your IT landscape. Rely on CALEO to minimize your business interruptions and reliably support your systems.
ARE YOU INTERESTED IN FURTHER INFORMATION OR A PROFESSIONAL EXCHANGE?
When it comes to your financial planning, we offer comprehensive service and support plans, customized solutions and proven best practices, which we are also happy to show you.
Our goal is to understand your unique business needs and objectives and provide you with the best possible support to help your business thrive.
With our experienced team of experts at your side, you can be sure that your implementation project will be realized quickly and effectively and that the solution will be optimally adapted to your requirements.
Even with solutions that have already been implemented, we ensure smooth operation, adapt your solution to changing requirements and support you in making the best use of it.
Business areas
In addition to our services in the SAP Planning division, we offer comprehensive services in the following complementary business areas. Rely on our expertise to strengthen your business processes and achieve sustainable success.
Consolidated financial statements
We support you in the preparation of consolidated financial statements by specializing in the optimization of financial statement processes, the implementation of systems for consolidated financial statements and external and internal reporting.
Analytics
Our teams of experts offer customized solutions in the areas of SAP analytics, data warehousing and reporting. With extensive experience in the implementation and optimization of systems, we take into account the latest developments in data processing and cloud technologies.
Sustainability reporting
Sustainability is becoming increasingly formalized and ESG reporting, which encompasses environmental, social and corporate governance, is gaining in importance. We help you to report on your company's sustainability in a transparent and compliant manner.
In focus
In our blog, we highlight current developments, practical tips and relevant trends relating to consolidated financial statements, financial planning and corporate reporting.