At what basis we choose that which planning will be good(CAPEX, OPEX, Headcount Planning, Driver Based Planning, Revenue Planning)

[former_member187267]

Hi Experts,

I am asking a question which i never faced, till now i am getting the TDD to create dimensions, models , BPF, Work status etc.

Now i want to understand that at what basis architect were choosing that which planning is best for which kind of requirement.

In my 2 projects it always only finance model and HR models are there and every thing is generated with the help of these 2 models so my question is

1- At what basis architect were choosing that which planning is best for which kind of requirement.

2-what is the criteria to choose CAPEX, OPEX, Headcount Planning, Driver Based Planning, Revenue Planning ?

3-What will be dimensions and model normally we will choose of CAPEX, OPEX, Headcount Planning, Driver Based Planning, Revenue Planning ?

Any document or help is there to understand the theory, Please note i am having only basic knowledge of finance.

Thanks,

Ravi

[Former Member · Accepted solution]

Hi Ravi,

I agree to what Vadim says. You are talking from a very generic perspective. There is no specific reason why different models are used in an implementation and likewise all of it can just be done in a specific model.

Your 1st step to start understanding the basis of making different models or just a few models will be to attend the requirement gathering phase of the project (along with your existing architect or lead). Don't go alone

Based on the overall scope of the project, following factors play an important role in determining what dimensions are used and how many models you may need:

1. Different granularity of data input / reporting requirements.

2. Various calculations / logic and components of these calculations.

3. Security / Workflow and dependencies of events on each other.

4. Expectations of user on the process, easiness of solution and performance of the solution.

I can list many more reasons and also elaborate all of the above points. But all of this you will understand over a period of time when you attend more requirement gathering workshops and work on different models.

Just a very simple example of having different models and the reason behind it.

Example: You could have 2 different Entity type dimensions - 1 could be Cost Center where you do detailed OPEX Planning and then this data could flow to FINANCE Model  where you have Profit Center as an Entity dimension and there is no Cost Center Dimension at all.

If you have not done a lot of projects with different models, i would suggest you should start doing that Dont work on the same project for years where it is difficult for you to picture such scenarios.

I hope this helps you and you can start imagining different scenarios.

Regards,

Saijes

[former_member187267 · Accepted solution]

Hi Saijes,

Thanks for reply, I agreed but the problem is i worked in a project where normally one model finance and max 2 models are there finance and HR. so i worked on models,dimensions and report, workstatus, BPF etc .

But now for new project(suppose to come on july last ) it's all coming up to me from the beginning now every thing i will take care but only that part that from which condition i will tell that , ok for this requirement OPEX , CAPEX will come picture.

Any SCN document is there to understand practically . I agreed that once i will discuss with the client i will understand and will be able to do .

But again in my previous project every things where deal with ONE model that is FINANCE model and it's working fine and that client is a BIG client having operation in many counties with multiple currency .

Now that kind of self raised question making me in more confusion about selection of planning and selection of model

ANY SCN document of or do you have any doc which you can share me for better understating ?

Thanks for your time

Regards,

Ravi

[former_member186338 · Accepted solution]

In general different cubes are required if there is some business process with specific requirements and parameters, not related to standard financial data.

Simple sample:

You want to perform sales planning for different channels with specific logic: planning standard prices, average discounts, volume of sales.

For the finance planning you need only resulting amounts.

In this case sales planning can be done in the separate model with results transfer to Planning.

Vadim

[former_member187267 · Accepted solution]

Hi Vadim,

Now that's the things i was looking for.

Now it is fine that according to the requirement  as you said (You want to perform sales planning for different channels with specific logic: planning standard prices, average discounts, volume of sales.)

we will choose a separate model as  sales and for finance planning you need only resulting amounts. so there will be another model which will Finance Model.

That i got this model point of view and i will do some home work to get more example to choose MODEL .

Now i am coming up to Planning part OPEX , CAPEX  which kind of planning it will be ?

if OPEX i am choosing then which model need to create ?

If CAPEX  i am choosing then which model need to create ? or any model just because of data ? i think there should be different scenario to choose OPEX, CAPEX or any other kind of planning ?

Thanks,

Ravi

[former_member186338 · Accepted solution]

It depends on customer detailed requirements. It's a waste of time to discuss it theoretically! Customer may plan CAPEX just in Excel sheets uploading final calculation results to the main planning model...

[former_member186338 · Accepted solution]

Try to understand that there are no fit all cases best solutions!

[Former Member · Accepted solution]

Hi Ravi,

This discussion could go on and on.

I could summarize it for you (But do not consider this as the only solution).

1. Opex Planning: Operating Exps and Operating Revenue Budget by Cost Center can be planned in this Model. Usually There are various Line Departments (This is quite a broad terminology and purely depends on the Industry) who plan for their respective Line Department (Cost Center) and eventually Data could flow into a Financial Model (At a higher level total cost only)

2. Capex Planning: Can be split majorly into 2: Fixed Assets Planning (Fixed Asset Register) and Project (WBS breakdown / or just Projects) based CAPEX Planning. But in both cases the expectation is to calculate Additions, Deletions, Depreciations, Capital Gains / Loss (In some cases).

Similar to OPEX, the detailed level plan in this Model will also flow to the Finance Model at an aggregated total FA GL and other relevant GL's (Depreciation, Gain / Loss etc.

Please do not consider the above as exclusive scenarios and it will surely be dependent on your client requirement.

Also i would suggest to better understand scenarios based aspects in future, post specific questions based what you have discussed with your clients. There are many of us who have worked on various Models and will be more than happy to guide you on what should be your approach for those discussed scenarios.

Regards,

Saijes

[former_member186338]

"only basic knowledge of finance" - it's an issue! You have to improve your finance skills. Without deep finance understanding you will not be able to architect the environment.

After you will have to investigate the existing business processes etc...

Vadim

[former_member187267]

Hi Vadim,

No one is perfect, so i am doing my effort and in terms of basic knowledge i means you took me that i have no knowledge but it is not like that i know how to make general and ledger,  balance sheet, profit and loss account sheet and final finance statement. I think is ok to even take a first step to understand that how and why we choose which kind of planning.

Now again full finance is like ocean and day by day i am getting a drop of it to make my self more knowledgeable in this field .

Now please help me to understand to get some online document to get information that how and why to choose which model in terms of BPC?

Thanks,

Ravi

[former_member186338]

If you know some finance basics - start talking with finance people first to understand the existing or required reporting process. Only after you understand it completely then you can think about possible BPC solution. BPC is very flexible and there is no perfect solution for all cases. It's based on company requirements.

P.S. And with BPC you can combine Excel planning calculations with cube reporting. You can move Excel calculations to cube logic step by step.

[former_member186338]

P.P.S. And if finance people in the company has no established reporting process and no full plan (tested in Excel) of the new reporting process - just don't participate in this project, it will fail

[former_member187267]

Hi Vadim,

Thanks any example that u used  CAPEX, OPEX planning for specific reason ?

and what dimensions used just a rough summary ..

Thanks,

Ravi

[former_member186338]

Useless to talk about examples, just a waste of time. There are hundreds of different examples! Listen to requirements!

[former_member187267]

Hi Vadim,

Below links are having good info about this ..

Carry-Forward Rule - SAP Business Planning and Consolidation, version for SAP NetWeaver - SAP Librar...

Thanks,

Ravi