SAC – Integrated Financial Planning – Data model and calculation method

[Josh93]

SAC – Data model and calculation method – specific values of dimension property: DRIVER_INPUT, CLOSING_INPUT and CHANGING_INPUT

Hello SAP-Community,

In the sample End-to-End Planning Process in Integrated Financial Planning for SAP S/4HANA we find the process step “Plan Balance Sheet” 

In this process step we find two Balance Sheets – Changing and Closing. From our understanding the business logic should be: Opening Balance Sheet + Changing Balance Sheet = Closing Balance Sheet.

This logic is reflected within each of those Balance Sheets.

Looking in the data model the only difference between the two Balance Sheets is the filter for the Calc Method property belonging to the dimension ‘SAP_FI_IFP_GLACCOUNT’ in the data model ‘SAP_FI_IFP_IM_FinancialStatement’. The changing and closing balance sheets are filtered by dimension property values CHANGING_INPUT and CLOSING_INPUT, respectively.

In the data model, we can see that the aforementioned G/L account dimension has members which have different Calc Method values. It means that only G/L accounts with the CHANGING_INPUT Calc Method property are shown in the changing sheet, whereas only the CLOSING_INPUT G/L accounts are shown in the closing sheet.

We recognize, that according to that setting, the respective accounts can be planned either by changing amount or closing amount. The assumption we made regarding the sample data and accounts is:

• Planned by CLOSING_INPUT > Valuation accounts
• Planned by CHANGING_INPUT > operational accounts
• Planned by DRIVER_INPUT > data by accounts receivables or accounts payables

We analyzed, that both calculation sheets together give the complete balance sheet.

The questions are now:

1. What is the difference between the calculation methods DRIVER_INPUT, CLOSING_INPUT and CHANGING_INPUT? Are our assumptions correct?
2. How is DRIVER_INPUT calculated or entered?
3. Why are the accounts labeled as it is with the corresponding Calc. Method (or empty)? How is this to interpret?
4. How are both Balance Sheets technically connected? What is the business intention behind those both views? How should those be read?

Thank you for you explanations and best regards!

[neil_bernstein · Accepted solution]

Hello,

Let me address your questions. 

1) At a high-level, in Integrated Financial Planning for SAP S/4HANA, the balance sheet is planned using a combination of user input and data actions.  There are 4 methods that can be assigned to each balance sheet account using the “Calc Method” property in the SAP_FI_IFP_GLACCOUNT dimension.

               CHANGING_INPUT: User enters the changing amount and the data action calculates the opening & closing amounts

               CLOSING_INPUT:  User enters the closing amount and the data action calculates the opening & changing amounts

               DRIVER_INPUT:  User doesn’t directly plan the balance sheet account but instead enters a driver such as Days Sales Outstanding or FTE.  A data action calculates the opening, changing & closing amounts for the associated balance sheet account.  I will discuss the details further down.

               CHANGING_CALC:  The data action calculates these balance sheet accounts directly.  One example is accumulated depreciation where the data action will use the depreciation planned in the P&L section as the input.  Another example is the cash account which is used to as the plug amount to balance the balance sheet.

At the end of the process, each balance sheet account, regardless of the planning method, will have an opening, changing and closing amount for each Plan period.

Your assumption regarding which accounts are planned by closing_input and which by changing_input is not entirely correct.  It is the customer’s choice on which method to use based on their business processes.  Certain accounts such as debt may be convenient to plan by closing amount while others such as PP&E may be convenient to plan by changing amount.  But by updating the “Calc Method” dimension property, you can customize it as desired.  You can also choose to exclusively use one method.

2) The second tab of the story SAP_FI_IFP_IM_FinancialStatement_Planning demonstrates driver-based planning.  The example delivered is using days sales outstanding (DSO) to plan Accounts Receivables and days payables outstanding (DPO) to plan Accounts Payable.

There are four steps:

• Run the data action “Calculate Drivers”.  Based on last year’s actuals (e.g. Revenue, Accounts Receivable), the data action calculates historical DSO/DPO to use as a starting point
• User adjusts the DSO/DPO amounts as desired
• Run the data action “Calculate Closing Amounts”.  Based on the DSO/DPO drivers and previously inputted P&L amounts for plan (e.g. revenue, COGS), the data action calculates the closing amounts for the Accounts Receivable/Accounts Payable balance sheet accounts.
• Run the data action “Calculate Balance Sheet”.  Opening & changing amounts are calculated based on the closing amounts

A customer could expand this section to use other drivers, e.g. using headcount to plan buildings, but they would be required to update the data actions with the necessary calculations.

3) I believe this is answered above.  Basically, customize to your needs by selecting either Changing_Input or Closing_Input.  Driver_Input can be used with the understanding of the necessary updates to the data actions.  Any balance sheet account with an empty Calc_Method is excluded from planning.

4) The fifth tab of the story SAP_FI_IFP_IM_FinancialStatement_Planning (Balance Sheet Report) or the third tab of the story SAP_FI_IFP_IM_FinancialStatement_Reports (View Balance Sheet) should be used to view the balance sheet in its entirety.  After running the data action “Calculate Balance Sheet”, the end result of all four balance sheet planning methods is available.  The other tabs in  SAP_FI_IFP_IM_FinancialStatement_Planning should be viewed as for data input only.

Best regards.