Liquidity Planning Starter Kit A New Weapon in the Liquidity Management Fight. Marc Mertens Partner Deloitte Consulting

Transcription

1 Liquidity Planning Starter Kit A New Weapon in the Liquidity Management Fight Marc Mertens Partner Deloitte Consulting

2 Why Improve Liquidity Planning? I went to the ATM this morning and it said insufficient funds. I m wondering, is it them or me 2011 SAP AG. All rights reserved. 1

3 Learning Points Learn how the SAP BusinessObjects Planning and Consolidation application, version for the SAP NetWeaver technology platform, can help you quickly automate your liquidity forecasts and improve their accuracy. The starter kit for liquidity planning, available for SAP BusinessObjects as a preconfiguration on top of SAP BusinessObjects Planning and Consolidation, helps you align liquidity-planning goals with strategic business objectives to find the best use for your cash. Instead of starting with an empty planning and reporting application shell, you can bring the starter kit for liquidity planning into the process and use the pre-built components to enable a faster implementation SAP AG. All rights reserved. 2

4 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 3

5 Why Is Liquidity Planning So Important Today? Tighter credit risk management of banking sector means more detailed cash flow information requirements Higher funding costs and pressure on working capital Economic downturn and pressure on gross margins have increased added value of effective hedging The need to gain greater financial visibility and control pushed cash flow to the forefront of corporate strategy. Nasreen Quibria, Aberdeen Group. Source: Cash Management - What is best practice? FSN.CO.UK. April 26, SAP AG. All rights reserved. 4

6 Top Priorities for Treasurers Liquidity and Cash Forecasting The major uncertainties in the economic outlook mean higher funding costs and uncertain revenues Current cash forecasting features of Treasury IT systems are considered insufficient Treasury Priorities Top Improvement Priorities Treasury Technology Liquidity Management Implementing New Structures Liquidity Forecasting FX Risk Management Technology SEPA Source: 2009 global survey of treasury professionals conducted by Deloitte 2011 SAP AG. All rights reserved. 5

7 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 6

8 What Is a Starter Kit? Starter kits facilitate and accelerate implementation projects: Starter kits are pre-configurations: prebuilt components in a starter kit enable a faster implementation that supports best practices for better results SAP and Deloitte s Treasury Management and Responsive Finance Team collaborated on a starter kit as a fast track to improved liquidity planning Some services are required to tailor the solution to your organization's specific needs Deloitte is the preferred implementation/services partner for the starter kit for liquidity planning The starter kit for liquidity planning does not have to be purchased separately. SAP is providing the starter kit at no additional license cost to customers that already own SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver and SAP BusinessObjects Dashboards 2011 SAP AG. All rights reserved. 7

9 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 8

10 Starter Kit for Liquidity Planning Functional Scope Addressing Typical Pain-Points in Liquidity Planning Jump-starts the implementation of a liquidity planning solution Improves liquidity planning (forecast) accuracy Reduces manual work by automating key calculations with embedded financial intelligence Delivers greater visibility into key working capital metrics Works with your existing ERP systems Delivers holistic coverage: o o o o Import direct and indirect cash flow information from any source systems Modify rules and rates for different scenarios Analyze liquidity scenarios in different time aggregations Evaluate incoming and outgoing cash and net income 2011 SAP AG. All rights reserved. 9

11 Starter Kit for Liquidity Planning Key Capabilities Automatically converts SAP BusinessObjects Planning and Consolidation planning data into cash flow data Calculates mid- to long-term forecasts (up to 2 years) by integrating committed transactions with forecasted financial data Isolates impact of intercompany cash flows on a group level Enables simulation and sensitivity analysis on source data and calculation rules Directly integrates with SAP NetWeaver enabling data quality checks and remediation procedures 2011 SAP AG. All rights reserved. 10

12 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 11

13 Business Analytics Solutions from SAP Achieve Remarkable Results Enterprise Performance Management Strategy Management Profitability and Cost Management Disclosure Management Planning, Budgeting, and Forecasting Financial Consolidation Analytic Applications By Industry By LoB Financial Services Service, Sales, and Marketing Public Sector and Healthcare Procurement Manufacturing Supply Chain Consumer Products Finance Retail and Telco Sustainability Utilities and more. IT, HR, and more Governance, Risk, and Compliance Enterprise GRC Global Trade Services Access Risk Management Continuous Transaction Monitoring Business Intelligence Enterprise Information Management Reporting and Analysis Dashboards and Visualization Data Services Master Data Management Data Exploration Mobile Event Processing Content Management BI Platform Data Warehousing Information Governance Enterprise Data Warehousing High-performance Analytic Solutions Data Mart Solutions 2011 SAP AG. All rights reserved. 12

14 SAP BusinessObjects Planning and Consolidation Version for SAP NetWeaver Streamlined consolidation, planning, budgeting, and forecasting Familiar and easy to use User owned and managed. Enables rapid adoption by leveraging native Microsoft Office tools (e.g., Excel). Consolidation business rules are configured by finance users Process-centric Customizable business process flows ensure consistency and minimize training Enforces policies and procedures track process status and completion Step-by-step guidance for users Unified planning and consolidation Single, integrated application reduces maintenance, improves data integrity Simplified deployment while enabling flexible consolidation and planning functions Optimized for SAP and non-sap environments 2011 SAP AG. All rights reserved. 13

15 Business Analytics Solutions from SAP Achieve Remarkable Results Enterprise Performance Management Strategy Management Profitability and Cost Management Disclosure Management Planning, Budgeting, and Forecasting Financial Consolidation Analytic Applications By Industry By LoB Financial Services Service, Sales, and Marketing Public Sector and Healthcare Procurement Manufacturing Supply Chain Consumer Products Finance Retail and Telco Sustainability Utilities and more. IT, HR, and more Governance, Risk, and Compliance Enterprise GRC Global Trade Services Access Risk Management Continuous Transaction Monitoring Business Intelligence Enterprise Information Management Reporting and Analysis Dashboards and Visualization Data Services Master Data Management Data Exploration Mobile Event Processing Content Management BI Platform Data Warehousing Information Governance Enterprise Data Warehousing High-performance Analytic Solutions Data Mart Solutions 2011 SAP AG. All rights reserved. 14

16 SAP BusinessObjects Dashboards (Ex-Xcelsius ) Create Interactive Analytics and Dashboards Consume attractive, personalized dashboards online or offline Access to personalized, Flash-based dashboards Secure visualizations anywhere portal, reports, PDF, Office documents Empower business users with interactive information Powerful what-if analysis with sliders and other controls Ability to drill-down into details Pre-built components, skins, maps, charts, gauges, and selectors 2011 SAP AG. All rights reserved. 15

17 Key Differences: SAP ERP Financials Treasury Apps and SAP BusinessObjects Planning and Consolidation SAP ERP Financials Treasury Applications: SAP Cash and Liquidity Management o o Helps you monitor and manage cash flow and liquidity Updates cash balances in real-time directly from receivables and payables in SAP ERP SAP Treasury and Risk Management o o Models risk scenarios and executes mitigation strategies Initiates, tracks, and accounts for investments and borrowing SAP BusinessObjects Planning and Consolidation starter kit for liquidity planning: Flexible cash flow forecasting/reporting Scenario planning/what-if analysis to simulate the impact of different cash flow strategies 2011 SAP AG. All rights reserved. 16

18 Starter Kit for Liquidity Planning Prebuilt Components That Can Be Adapted to Your Organization s Needs Templates and functions to import aggregated liquidity data from SAP NetWeaver BW to SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver Templates to maintain cash calculation rules and currency conversion rates Automated liquidity calculation and currency translation functions Templates for reporting and manual adjustments, simulating liquidity strategies, and displaying daily liquidity forecasts with monthly and quarterly aggregation Dashboards* that provide insight into working capital metrics and incoming and outgoing cash, with navigation and drill-down capabilities, as well as the ability to make manual adjustments *Created with SAP BusinessObjects Dashboards software licensed separately by SAP 2011 SAP AG. All rights reserved. 17

19 Starter Kit for Liquidity Planning Prebuilt Components That Can Be Adapted to Your Organization s Needs (cont.) From a technical standpoint, the starter kit, which can be tailored to your organization s specific needs, contains: A transport file for SAP NetWeaver Business Warehouse to be imported via the stms transaction (SAP transport request) containing: o BW objects incl. InfoProvider, InfoObjects, Update Rules, InfoPackage A Backup and Restore file for SAP BusinessObjects Planning and Consolidation to be imported via the ujbr transaction containing: o AppSet for Liquidity Planning, BW objects in the Planning and Consolidation namespace (incl. InfoProvider, etc.), file folder for appset, examples of transaction data and master data, Excel Workbook with cash flow calculation logic A pre-defined SAP BusinessObjects Dashboards analytical dashboard (in.pdf,.ppt and.xlf formats) to be connected with the data available in Planning and Consolidation for read/write access Technical documentation and end-user documentation An example of an upload file (a.csv flat file) for integration of liquidity data from other sources 2011 SAP AG. All rights reserved. 18

20 Starter Kit for Liquidity Planning Technical Process Diagram Drill-through to SAP BEx Report SAP BusinessObjects Planning and Consolidation Excel Interface SAP BusinessObjects Dashboards Report on liquidity Information with different tools SAP BusinessObjects Planning and Consolidation Excel and Web interfaces Maintain data and run planning functions SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver Store data in central database Harmonization of source data in SAP NetWeaver BW EDW SAP ERP Flat File Database. Source Systems 2011 SAP AG. All rights reserved. 19

21 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 20

22 Starter Kit for Liquidity Planning Liquidity Planning Process Upload latest Liquidity Information (e.g., sales forecast, salary info, sales orders) from any Source system Cash Flow BEGIN Cash Flow Calculation Rules (e.g., DSO calculation) Run Cash Flow Calculation END Analyze Results and Make Required Top-Down Adjustments Change Parameters (optional) Currency Rates Projected Currency Conversion Rates Run Currency Translation Generate Liquidity Planning Report Simulate Different Scenarios 2011 SAP AG. All rights reserved. 21

23 Starter Kit for Liquidity Planning Scenario Diagram System Independent Inputs Analyze/ Remediate/ Aggregate Define and Maintain Calculation Rules Calculate Cash Flows Report PO/AP Transaction Data SO/AR Financials Define calculation rules Calculate cash flow SAP BusinessObjects Planning and Consolidation Excel interface Forecast Data CAPEX Sales HR Data analysis of latest liquidity information Aggregation in SAP NetWeaver BW Maintain calculation rules Upload currency rates for future time frame Run currency translation Simulate in different versions and do manual adaptions Dashboards embedded in SAP BusinessObjects Planning and Consolidation 2011 SAP AG. All rights reserved. 22

24 Starter Kit for Liquidity Planning Scenario Diagram Upload and Harmonize Liquidity Data System Independent Inputs Analyze/ Remediate/ Aggregate Define and Maintain Calculation Rules Calculate Cash Flows Report PO/AP Transaction Data SO/AR Financials Define calculation rules Calculate cash flow SAP BusinessObjects Planning and Consolidation Excel interface Forecast Data CAPEX Sales HR Data analysis of latest liquidity information Aggregation in SAP NetWeaver BW Maintain calculation rules Upload currency rates for future time frame Run currency translation Simulate in different versions and do manual adaptions Dashboards embedded in SAP BusinessObjects Planning and Consolidation 2011 SAP AG. All rights reserved. 23

25 Demo 2011 SAP AG. All rights reserved. 24

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41 Agenda 1. Understanding liquidity planning as a top priority for treasurers 2. Reviewing the starter kit for liquidity planning What is a starter kit? Presenting the starter kit s functional scope What SAP solutions is the starter kit a pre-configuration for? Walking through the liquidity planning and forecasting scenario enabled by the starter kit 3. Viewing a demo 4. Wrap-up 2011 SAP AG. All rights reserved. 40

42 Starter Kit for Liquidity Planning Functional Summary Input Templates Import aggregated liquidity data from the SAP NetWeaver BW EDW (capture any liquidity relevant information from any source system) Import aggregated data into the Excel workbook in SAP BusinessObjects Planning and Consolidation Embedded Intelligence Utilize embedded liquidity calculations and currency translation functions Leverage dynamic time frame views of cash flows (daily, monthly and quarterly views available) Reports Drill-through to source systems (e.g., BEx report, ERP or any Web application that can be accessed via url) Drill-down/up to daily, monthly and quarterly views in out-of-the-box liquidity planning report Dashboards Visualize working capital metrics, cash inflow/outflows and other key performance indicators in a highly-interactive, graphical environment Make manual adjustments directly within the dashboard 2011 SAP AG. All rights reserved. 41

43 Resources Dr. Karol Bliznak, What You Need to Know about the Starter Kit for Liquidity Planning for SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver (Financials Expert, February 2011): Press release on the starter kit for liquidity planning: SAP and Deloitte Webcast recording: Building Blocks of Best Practices for Liquidity Planning: How to Take Control of Your Cash Flow (November, 2010) on cfo.com: YouTube: SAP and Deloitte the joint Responsive Finance initiative: More info on SAP BusinessObjects Planning and Consolidation: To learn more about SAP BusinessObjects enterprise performance management (EPM) products in general, go to: SAP AG. All rights reserved. 42

44 7 Key Points to Take Home SAP and Deloitte collaborated on the starter kit for liquidity planning. Deloitte is the preferred implementation/services partner for the starter kit for liquidity planning. Deloitte and SAP consultants have access to the starter kit and provide implementation services to tailor it to your organization s specific needs. The starter kit as a pre-configuration is available for the SAP BusinessObjects Planning and Consolidation application, version for the SAP NetWeaver technology platform and for SAP BusinessObjects Dashboards. With the starter kit, you can: Access detailed cash-flow information Model the impact of different company and currency scenarios on cash flows And prepare executive reports based on those scenarios 2011 SAP AG. All rights reserved. 43

45 7 Key Points to Take Home (cont.) The kit supports the automatic import of data from the SAP ERP Financials solution and any other enterprise resource planning (ERP) system. You can import: Direct transaction data (such as information related to accounts payable, accounts receivable, or financials) As well as indirect forecast data (such as information related to capital expenditures, sales, or human resources) Using an intuitive interface, you can analyze: Cash inflows (such as committed sales, pending accounts, or receivables) As well as cash outflows (such as account payables and tax payables) You can make manual calculation adjustments on the fly and run different scenarios to see the potential effects of changes to specific liquidity variables SAP AG. All rights reserved. 44

46 Your Turn: Questions? Contact information: Marc Mertens Deloitte