planning budgeting and forecasting bpdd

CONTACT ENERGYENT ERPRISE TRANSFORMATION PROGRAMME

Business Process Design Document 12.3.6 Planning Budgeting and Forecasting

Version 0.11.0

February 26th 2010Author: Terry Baker / Vinod Shekhapuram Owner: ET-PMO

DOCUMENT MANAGEMENT

DOCUMENT LOCAT ION

This document is stored in << BPDD Planning Budgeting & Forecasting>>

Paper copies of this document are valid only on the day they are printed. Refer to the author if you are in any doubt about the currency of this document.

REVIS ION H ISTORY

Version Date Author Change Description Changes Marked?

0.1 10/02/2010

Vinod Shekhapuram 1st Draft

0.2 26/02/2010

Vinod Shekhapuram Updated for walkthrough and approval workshop

N

1.0 26/02/2010

Vinod Shekhapuram Approved

ASSOCIATED DOCUMENT(S)

Following documents need to be read in conjunction with this document

Document Name Version No. Version Date Document Location

L3 12.2.6 Planning Budgeting and Forecasting

Scope Document

ET Workshop Minutes Planning Budgeting and Forecasting

Minutes Document

QUAL ITY REV IEW

This document has been reviewed for quality by the following personnel.

Name Function Date of approval

Sachin Kamat Peer review

Subin Rajasekaran ET-PMO

Chris Anderson Quality

PLANNING BUDGETING AND FORECASTING PAGE 2 OF 70

APPROVALS

This document has been approved by the following people. Signed approval forms are filed in Quality section of the Project Control Book.

Name Function Date of approval Signature

Geoff Walker Business Representative

Chandra Yee Business Process Owner

DISTRIBUT ION

This document has been distributed to:


TABLE OF CONTENTS

1............................INTRODUCTION...........................................................5

1.1.............Document Purpose................................................5

1.2...........Document Structure................................................5

2..........................................SCOPE...........................................................7

2.1..........Vision and Business Objectives...............................7

2.2............Benefits Realisation................................................7

2.3....Summary of workstream scope......................................8

2.4..................Non Functional requirements...........................9

3...................KEY DECISIONS AND ASSUMPTIONS...............................11

4............FUTURE STATE PROCESS.........................................................16

4.1.......................Introduction..............................................16

4.2......Process Flow Details – BUDGETING........................21

4.3......Process Flow Details – FORECASTING....................28

4.4......Process Flow Details – VERSION maintenance........34

5...................STANDARD REPORTS.........................................................37

6 MASTER DATA CONSIDERATIONS.........................................................39

6.1..............Master Data – VERSIONS........................39

7.....................SAP DEVELOPMENT.........................................................40

7.1..........................sAP Gaps..............................................40

7.2 Interface Developments...................................................................................................................41

7.3 Conversions.....................................................................................................................................43

7.4 Report Definitions.............................................................................................................................45

7.5 Forms...............................................................................................................................................50

7.6 Workflows.........................................................................................................................................51

8 AUTHORIZATION & ROLES.......................................................................................................................53

9 TESTING CONSIDERATIONS....................................................................................................................54

10 CONVERSION INITIAL RULES..................................................................................................................55


Name Function

Chandra Yee Finance Mgr Group Performance

Jennie Thompson ET Delivery Lead Finance

Matt Bolton Financial Accounting Manager

Jessie Xuan Snr Grp Performance Accountant

Wendy Ainsworth Retail Finance Manager

Glen Cattermole Finance Mgr Generation

Nicole Smith Snr Strategic Analyst

Andrew Hutchinson Finance Mgr – Operations

Mike Robertson Gen Ops Accounting Manager

Sadanand Shenoy BI Developer

Geoff Walker Management Accountant

Jo Broad LPG Finance Manager

Simon Healy Corporate Finance Manager

Nigel Thompson Financial Controller

Clinton Jenkins ET Business Representative

Jonathan Holmes ET Business Lead Finance

Adrian Simnett ET Solution Delivery Mgr Finance

Chris Anderson ET Quality Assurance

David Clegg ET Change Management

Pat McKeefry ET Data Management

Marien de Wilde ET Solution Architect

Andrew Christian ET Technical

Andrew Greally ET Solution Delivery Mgr Generation / PMO

Gary Robinson ET Business Lead Generation

Tracey Boyes Audit and Assurance

10.1 SAP Object Source (From Legacy)..................................................................................................55

10.2 High Level Data Requirements........................................................................................................56

10.3 Data Cleansing Requirements.........................................................................................................57

10.4 Interim Process/cutover/deployment Considerations.......................................................................57

10.5 Archival Requirements – Legacy Systems.......................................................................................57

11 BATCH REQUIREMENTS..........................................................................................................................59

12 FUTURE CONSIDERATIONS.....................................................................................................................60

13 OPEN ISSUES............................................................................................................................................61

14 APPENDIX..................................................................................................................................................63

14.1 Conventions Used............................................................................................................................63

14.2 Glossary...........................................................................................................................................66


1 INTRODUCTION

1 . 1 D O C U M E N T P U R P O S E

This blueprint document is a result of the discussion between Contact business and ET project team. The document encompasses the business process flow and the design requirements for the specific L3 processes as per the ET scope documents. This document will be used as the basis for the solution delivered for the future state process

The blueprint document serves as a central repository for the end to end business process flows which reflect project scope. The document will be used as a baseline for the following future project activities:

SAP solution configuration design

SAP technical developments including Reports, Interfaces, Data management activities, System enhancements, Forms and Workflows

Creation of business process testing suite for system integration testing

Creation of end user training material including business process procedures and steps

Change management planning and execution

Future business process improvements

1 . 2 D O C U M E N T S T R U C T U R E

Sections in this document are structured as follows:

Section Number

Section Heading Section Content

2 Process Scope Summary of Scope & Exceptions

3 Key DecisionsKey Decisions identified for the Future State Process

4 Future State Process IdentificationFuture State Process diagram and details along with SAP Transaction codes

5 Standard ReportsStandard SAP reports identified that will be used within the process

6 Master Data ConsiderationsMaster data considerations required for Future State Process

7 SAP development SAP Gaps, Interface, Conversions , Reporting, Forms, Workflows


Section Number

Section Heading Section Content

8 Authorizations and User Roles Details of User roles/ Authorization matrix.

9 Testing Considerations Details of Key Scenarios recommended for testing

10 Conversion Considerations Details of SAP Opening balance data conversion considerations

11 Batch requirements Details of Batch jobs requirements with frequency

12 Future ConsiderationsDetails of all future considerations for the Process

13 Open Issues List of Scoping issues

14 AppendicesContains conventions and glossary to terms.


2 SCOPE

2 . 1 V I S I O N A N D B U S I N E S S O B J E C T I V E S

The vision for Finance is: “To be a highly valued partner providing financial expertise, supporting the business to make effective business decisions and achieve outstanding results.”

The associated Strategic Drivers to realise this Vision are:

Standardised, simplified and automated operation / improved decision making

Increase adaptability and decrease the effort spent on transactional processing, moving the focus to decision support activities.

Financial management of projects

Reduce the level of project financial management supported by spreadsheets and the number of manual workarounds in place to meet core reporting requirements.

Provide a standardised practice across Contact and enable portfolio-level views of resources and investment that will drive more effective prioritisation decisions and improved monitoring.

Strategic approach to procurement

Introduce a procurement capability underpinned by enforceable standard practices, company-wide reporting and creates a platform to establish, manage, monitor and measure suppliers according to strategic importance in the long term.

Embedding financial discipline in the organisation

Replace manual internal controls that often both inhibit efficiency and have internal audit report items raised.

2 . 2 B E N E F I T S R E A L I S A T I O N

The following table presents the benefits identified and quantified within the programme benefits case that pertain to the process covered within this blueprint document and evaluates the contribution thereof to the achievement of these benefits.

Benefit Reference

Benefit Description BPDD Consistent with Target Improvement? (Y/N)

Comments (if any)

FIN 1.1 & 1.2 Streamlined Financial Operation & Business Productivity

Y Budget and plan information held within SAP which will enable streamlined reporting activity.


Benefit Reference

Benefit Description BPDD Consistent with Target Improvement? (Y/N)

Comments (if any)

FIN 3.1 & 3.2 Recruitment, Training Costs and new staff efficiency

Y Budget and plan information held within SAP which will enable streamlined reporting activity.

2 . 3 S U M M A R Y O F W O R K S T R E A M S C O P E

2.3 .1 PROCESS SCOPE

The following table outlines the processes included in 12.3.6 Planning Budgeting & Forecasting as per the ET Program Scope documents

Level 1 Level 2 Level 3

12.0 Financials 12.3 Management Accounting 12.3.6 Planning Budgeting and Forecasting

2.3 .2 PROCESS SCOPE EXCEPTIONS

The following table outlines the exceptions identified from the confirmed and agreed ET Program Scope documents for 12.3.6 Planning Budgeting and Forecasting, supported by Programme Change Control procedure.

CR # Exception description Resolution details

Workflow - SMT Budget Communication (early warning)

De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.

Workflow - Planning Instructions De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.


CR # Exception description Resolution details

Workflow - plan data requires approval De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.

Workflow - Plan change De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.

Workflow - Plan approved De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.

2 . 4 N O N F U N C T I O N A L R E Q U I R E M E N T S

The following table outlines the key non-functional requirements identified for the ET Program Scope.

Non functional parameters Description

Scalability Provision built to accommodate specified database growth without the need for re-design and encompasses master and transactional data with minimum retention period for key data objects.

Usability Meets the requirements for system accessibility, user authentication, intuitive transaction flows, customisable and textual error messaging, usability of mobile services etc.

Supportability All software components and versions in use will be certified as per Product Availability Matrices and retained at current maintenance levels

Auditing Provides ability to fulfil specified transaction auditing

Archiving Provides ability to archive business transactions based on set criteria

Security Provides secure and controlled access to data by employing role based authentication and secure access control


Non functional parameters Description

Performance Provides pre-defined Transaction and Screen response times Transaction and volume through put

Batch processing with-in operational windows


3 KEY DECISIONS AND ASSUMPTIONS

This section records the key decisions made during and post the design workshops. Including any assumptions made that support these decisions. Should any deviations from the standard SAP processes be proposed, the reasons supporting these decisions should be contained within this section.

Number Decision / Assumption Details

01 BI-IP Planning functionality will not be implemented in the Finance wave at Contact as per the Level 3 Scoping workshops. In future consideration may be given to implementing a SAP planning tool, e.g. BPO

02 At Contact SAP will be the central repository for Plan data. The Strategic Plan (five years), Budget and Forecast will be loaded to SAP. Note that access to the Strat Plan will be restricted.

03 The Strategic Plan will be updated every financial year. This will be stored as a new version per financial year. Current year plus 5 years forward need to be open for input.

04 Multiple plan versions will be used Budget/Forecast per cycle. Forecast versions will be retained in SAP per month. These are outlined in Section 4.2.1 and Section 4.3.1

05 The Strategic Plan and Budget versions, as per Section 4.2.1, will be maintained for Origin Submissions and are for Central Finance purposes only, i.e. tags B, C and D. The business units will populate versions A, E and F only.

06 Rolling forecasts, i.e. a forecast spans more than 1 financial year, are to be supported in SAP for input/output of plan data and reporting.



07 In Contact, Planning data will be input in the following areas of SAP

Costs

Controlling (CO) for Cost Centre (CC) and Internal orders (IO)

Project Systems (PS) for WBS (Work Breakdown Structure Element) - including project OPEX. Note that the recommended approach by SAP / Wipro is that Project Opex is not settled to Cost Centre’s, but will be available for reporting at a Cost Centre level in FI / New GL.

Revenue

FI (Using New GL to plan against Profit Centre’s)

Balance sheet items


The FI New GL (cost centre/profit centre) view will hold all the integrated planning data (distinguishing between cost centre / non cost centre costs) for high level aggregated actual v plan reporting and variance analysis. Non cost centre costs will be a summation of Projects and internal orders which are populated with a profit centre

Custom BI reports will provide a detailed view of actual v planned costs broken down into detail by cost element/ cost object (cost centre, WBS, IO) and WBS type (Capex/Opex). The requirement for this reporting is captured in section 7.4, and is also a requirement in the Reporting BPDD. This report will need to be available on a timely basis from BI (ideally real time) to support tight deadlines in planning cycles.

Note: Cost centre to profit centre will be mapped 1:1 at Contact – refer Profit centre BPDD.

The process described above is recommended process by SAP/Wipro with the introduction of SAP New GL functionality. Projects with Opex costs will be locked so no further postings to them will be allowed after completion of the project. The overall process will be subject to BPDD safeguard review which will consider SAP standard practice and integrated processes.

08 Integrated solution design will need to support Capex and Opex Recoveries. E.g. At Contact all Contractors costs are charged to Opex (this is Contact policy). The corresponding Recovery to Opex will be posted when the project is on-charged using a Capex WBS

Integrated solution also needs to support revenue, e.g. Sundry income from Retail Meter Rent will be posted against a Profit Centre revenue element, and the corresponding costs of this service will be against a Cost Centre cost element in SAP. Some of these may also need to be used in combination with WBS elements.



09 Integrated planning will be ‘default active’ for Internal Order & WBS element at a master data level

10 Integrated planning will be activated in configuration for all CO & FI Planning in order to flow plan data from CO to FI

11 Plan data from other source systems such as the Retail Model, Gas Model, ICE, E@R etc. will be used as an input into Budgets, Forecasts and the Strat Plan and will be required to be uploaded /interfaced into SAP. Refer Section 7.2.

12 Plan data for Budget, Forecasts and Strat Plan loaded into SAP will need to be output for uploading/interfacing into ICE/E@R models.

13 Data from external systems e.g. ICE, E@R, etc., will need to be at the business unit level of detail (revenue/cost element and cost object e.g. Cost centre / Profit centre) to be uploaded to SAP. Contact will need to establish the appropriate business unit level of detail (profit centre group) for balance sheet and profit and loss items required for budgets/forecasts.

14 Contact will use Excel upload functionality for uploading or changing the plan data via SAP Planning Templates.

It is important that SAP Planning Templates are developed in a format that budget/project managers can easily populate, and the format is suitable for loading multiple cost objects (cost centres, WBS, Internal orders) or profit centres plans into SAP. Refer Forms section. Templates will also be required for the uploading of SKF data.

15 The following types of budget preparation will be undertaken:

a. The Strategic Plan will be zero-based.

b. The Budget will be zero-based, however if the Strategic Plan is to be used as the starting point for the Budget then year 1 of the Strategic Plan will become the Budget.

c. The Forecast will reflect monthly actuals and the forecast for the subsequent months, i.e. the first forecast (usually in August) will be based on the month 1 actuals plus budget for the remaining months. For subsequent months the forecast will be based on actuals for the preceding months, and the previous month forecast for the remaining months. There is no forecast undertaken in both the first and last months of the financial year.

d. By month/cycle, there will be a separate Forecast version retained in SAP



16 Version control will need to be centrally managed by Contact to coordinate locking and copying of versions. The use of the global variable to assist the end-user in selecting the correct version is recommended.

17 Contact will ensure that versions are empty before loading any plan data.

18 Contact will use NZD for the planning currency. In future consideration should be given to incorporating foreign currencies, i.e. USD, AUD, etc.

19 Plan data will include planning for Statistical Key figures.

20 Planning Distribution keys required for Contact are equal distribution (divided by12), calendar days working days. Note that phasing can be done manually. Customer numbers may also be used for distributing planned amounts and if so this will be loaded as a planned SKF. Further distribution keys may be identified during realisation phase.

21 Co-dependent processes have been identified as:

o Profit Centres

o Cost Centres/Internal orders

o Transfer Pricing

o Profitability Accounting

o G/L and accrual accounting

o Projects

o Reporting (Board and Ownership, Financial Analytics, BI)

o Investment Management (includes depreciation)

o Plant Maintenance (Generation go-live)

Finalisation of these co-dependent BPDDs may impact on this document.

22 Capex plans will be loaded by individual Project and the appropriate WBS level for each project. Capex reports will be available at a project level (at an input/project costs view). In SAP The split of Stay in Business v Growth will be available at a project level.

Note: Cash Capex planning will be done outside of SAP. In future this will need to be considered within a planning tool. Refer Reporting BPDD for Cash Capex actuals.

Note: In future non project direct asset purchases will be planned against a cost centre or an internal order.



23 Integrations workshops/Deployment strategy will need to consider impact of planning objects required for Generation (Projects, Internal orders). Note that Internal Orders could be used to plan for Maintenance costs until Generation is implemented in SAP.

24 The organization units described in this document are provisional and are subject to change. The final SAP enterprise structure will be designed and presented in a separate document after completion of all blueprint workshops

25 Process for Assessments and Distribution detailed in Cost centre BPDD can also be executed for plan data.


4 FUTURE STATE PROCESS

4 . 1 I N T R O D U C T I O N

The purpose of the Planning process is to:

Develop financial targets that are aligned with the strategic goals of the organisation Establish clear ownership and accountability for achieving targets and objectives Provide transparency of the resources that the organisation will require in the upcoming period. Allow prioritisation of competing objectives. On-going monitoring of progress towards achieving the financial targets Embed best business practices in the planning process.

The Planning process includes both the full year budget/target setting process and the monthly/quarterly re-forecasting process.

The planning, budgeting and forecasting process includes the following: Establish Planning Strategy Setup Planning Templates Start Planning Round Process Planning Round until there is an approved plan version

Each of these is discussed in more detail below.

1. Establish Planning Strategy Assumption that the Strategic Plan has been approved. Define the planning cycles that will be implemented for Contact;

Strategic Plan Annual Budget Monthly Forecasting Rolling Forecast

Define planning approach for planning cycles; Top Down / Bottom Up Level of Detail Define Timetable Key Underlying Assumptions (linked to the Strategic Plan)

Communicate to participants; Roles and Responsibilities Planning Approach Business Plan commentary required to support budget request.

2. Setup Planning Templates Create standard templates for capturing planning data to support;

Strategic Plan


Budgets Forecasts (Monthly) Rolling Forecasts

Templates to include if applicable; Actual Data in forecast versions Statistical Data i.e. FTE’s for Payroll Costs

Define standard templates to support; Balance Sheet Accounts Profit and Loss Accounts

• Revenue and Cost of Goods Sold• Overhead expense• Plant Maintenance

3. Start Planning Round

Define appropriate receivers of planning templates; Cost Centre Managers Business Unit Analysts Management Accountants, etc

4. Process Planning Round until there is an approved plan version

Receive templates back Upload formatted template files into relevant individual SAP Modules General Ledger

(Including Profit Centre Accounting) Cost Centre Accounting (Overhead) Cost Centre Accounting (Plant Maintenance) Capital Budgets (Project Systems / Investment Management) Balance Sheet & Revenue (FI Planning)

Review information (Segmented and Consolidated Information Level) Publish report for review and approval by relevant Manager, e.g.

Cost Centre Manager Project Manager Management Accountant Profit Centre Manager General Manager

Update/adjust for iterations as required, e.g. following GM review of Business Area Produce consolidated information for SMT discussion and approval. Update/adjust for iterations as required (including application of “stretch”).

4.1 .1 OVERVIEW

Level 2 (Business Scenario) - 12.3 Management Accounting

There are 4 business scenarios within the Financial Mega Process. This document covers Financial


Accounting and the L3 process Planning Budgeting & Forecasting (12.3.6 Planning Budgeting and Forecasting) –

The following Level 4 activities and sub-processes are found within the process Planning Budgeting & Forecasting and covered in detail within this document,

Budgeting

Forecasting

Master Data

Version Maintenance

4.1 .2 FUNCTIONALITY OF SAP FI & CO PLANNING

Key Concepts in SAP Planning

Planning Version – Versions enable you to have independent sets of planning data e.g. Budget, Forecast

Integrated Planning – By aactivating integrated planning with FI New General Ledger the system automatically transfers planning data for Internal orders, Cost Centre Accounting, WBS, etc to the New GL in FI and against Profit Centres

Planning Period Lock – Planning periods can be locked in order to avoid entry into the approved planned data.

Planning Version Lock - Planning versions can be locked to prevent changing or creating plan data

Other planning features:


12.3 Management Accounting 12.4 Financial Analytics12.1 FSCM (incl Cash Mgmt& Treasury) 12.2 Financial Accounting

12. Financials

Plan data can be copied from one version to another version.

Actual data can be easily converted as plan data for next year planning.

Planning data can be modified easily using excel online.

Standard SAP functionality for uploading planning files in FI & CO.

All planning files can be easily uploaded using single transaction code.

Standard reports available in SAP to report the Actual vs Plan data.

Company specific reports can be developed in SAP/BI system.

Controlling (CO) Planning/ Project Systems (PS) Planning

In SAP, we can plan on various cost objects for each cost element e.g. Cost Centre, Activity Type, SKF (Statistical Key Figure), Project or WBS Element, Internal Order, etc to compare actual versus plan for variance analysis

Versions defined to CO are also defined in FI for flow of plan data from CO to FI.

Planning templates are used for creating or uploading plan data for each object.

Cost Centre Planning

Cost centre planning consists of the following areas:

Planning of activity quantities and/or prices Planning of costs expected to be incurred

Planning statistical key figures, which are used as the basis for the allocation of costs

Internal Order Planning

Using internal order planning, we can compare plan and actual costs, and carry out variance analysis.

WBS Planning

Cost planning deals with the costs you expect to incur in connection with your project as it is executed.

FI New GL Planning (profit Centres)

Balance Sheet & Revenue accounts are planned in FI New GL against Profit Centres.

Using Integrated Planning, the costs from the CO module are transferred to FI New GL providing a full view of the plan by Profit Centre


Key Considerations for Contact

In Contact, Planning data will be input in the following areas of SAP

Costs

Controlling (CO) for Cost Centre (CC) and Internal orders (IO)

Project Systems (PS) for WBS (Work Breakdown Structure Element) - including project OPEX. Note that the recommended approach by SAP / Wipro is that Project Opex is not settled to Cost Centre’s, but will be available for reporting at a Cost Centre level in FI / New GL.

Revenue


Balance sheet items


Standard reporting is available in each of these areas to look specifically at planned costs against e.g. cost centre and projects

The FI New GL (cost centre/profit centre) view will hold all the integrated planning data (distinguishing between cost centre / non cost centre costs) for high level aggregated actual v plan reporting and variance analysis. Non cost centre costs will be a summation of Projects and internal orders which are populated with a profit centre

Note: Cost centre to profit centre will be mapped 1:1 at Contact – refer Profit centre BPDD.

Custom BI reporting will provide a detailed view of actual v planned revenue and costs broken down into detail by profit centre, cost element/ cost object (cost centre, WBS, IO,) and WBS type (Capex/Opex). The requirement for this reporting is captured in section 7.4, and is also a requirement in the Reporting BPDD.

Report s in BI used for budgeting and forecasting will need to be available on a timely basis from BI (ideally real time) to support tight deadlines in planning cycles. Changes in the planned data will need to made at the source module and integrated back through to BI to finalise.

The process described above is recommended process by SAP/Wipro with the introduction of SAP New GL functionality. For projects a structure will be set up with WBS type to post to either a WBS Opex or Capex. Opex Costs in projects will not settle to a cost centre but on project completion will be locked so no further postings to them will be allowed. The overall process will be subject to BPDD safeguard review which will consider SAP standard practice and integrated processes

The design will also need to support Recoveries. E.g. at Contact all Contractors costs are charged to Opex (this is Contact policy). The corresponding Recovery to Opex will be posted when the project is on-charged using a Capex WBS


Integrated solution also needs to support revenue, e.g. Sundry income from Retail Meter Rent will be posted against a Profit Centre revenue element, and the corresponding costs of this service will be against a Cost Centre cost element in SAP.For a net result of these Recoveries e.g. Retail meter leases, Land recoveries, planned costs will also be posted against the Profit centre via integrated planning to show the overall result

4 . 2 P R O C E S S F L O W D E T A I L S – B U D G E T I N G

4.2 .1 PROCESS OVERVIEW

The current budgeting process commences around February each year, with business units using budgeting tool such as ICE and Excel spreadsheet models to bring together plan and actual information at an appropriate level for initial business unit management review.

Plans are usually submitted in this process to cover a 1 year time period and phased monthly to ultimately become the new annual budget.

In Contact, plan data for costs is loaded in Controlling module and Balance sheet and Revenue accounts are planned in FI module against profit centres.

The objects for planning in Controlling are a combination of Cost Centre/Cost Element, Internal Order/Cost Element & WBS Element/Cost Element.

The objects for planning in FI are a combination of Balance Sheet account/Profit centre & Revenue Element / Profit Centre.

The source of budgeting data is from -

OCCAM (Optimisation tool based on hydrology)

Retail Model spreadsheet

Gas Model spreadsheet

Capex and Depreciation spreadsheet

Other income spreadsheet

Routine Opex / Contractor Recoveries, meter lease spreadsheets

LPG Gross Margin spreadsheet

Other source

The planning data in the source systems are created in SAP upload format and are uploaded manually into SAP system using standard Excel upload functionality.


The following versions and planning stages have been identified for the Budgeting process

Tag Name Version

A Starting Point / Accounting Adjustment (can include ICE) A00

B Origin Submission 1 B00

C Origin Submission 2 C00

D Origin Submission 3 D00

E Accountant Re-allocation / Leadership team adjustments E00

F Final Budget F00

Note that the Origin Submissions are for Central Finance purposes only, i.e. tags B, C and D. The business units will populate versions A, E and F only.

Versions naming convention is shown above as a starting point but may change during realisation phase to provide more logic or consistency in the budget/forecast planning cycle

Refer List of Draft Planning versions

High level future state process of Budgeting in Contact -

For finance year 2010-2011, the budgeting data will be already completed before SAP go-live; hence this data will be mapped and migrated into SAP system.

From next financial year onwards, budgeting process will be undertaken in SAP system.

In SAP, finalised budgets will be locked for all budgeting versions.

As a starting point, the budget data from the source is uploaded into SAP in version A00.

Accountant Adjustments are made in A00

After accountant adjustment plan data is copied to B00 for Origin submission

C00 and D00 are also maintained for the subsequent Origin submissions

Version E00 is used to post the high level Leadership team adjustments which are then allocated by the Accountant across the business unit. After all the adjustments are made and approved by the respective business, the budget data is copied to the final version F00.

Budget data is loaded into SAP and phased for 12 periods (months).

The plan data is automatically updated to profit centres through the respective objects in CO.

Actual vs Plan reports are generated using the version F00.

The complete budgeting process is captured in ARIS process diagram.


Contact' Current Budgeting Process


4.2 .2 PROCESS FLOW DIAGRAM – BUDGETING

Refer to appendix for conventions of flow charts

Note: The ARIS process diagram covers the steps to be followed for processing of Budgeting , however relevant manual steps has been incorporated in order to show the process. Link to the ARIS Document: ARIS Diagram

Link to Microsoft Visio Diagram


4.2 .3 PROCESS STEPS – BUDGETING

Process Step Ref. Process Step SAP T-Code Process Step Description

01 Open relevant posting periods for Planning input in FI & CO

T. code : OKP1 (CO Planning)

T. code : OB52 (FI Planning)

Open the respective plan periods in FI & CO

02 Check whether the budgeting version is maintained in SAP for new financial year and integrated planning is active

T. code : TBD Check whether the integrated planning is active for respective budget version and financial year is maintained for the respective budget version

03 Maintain version for the financial year and active integrated planning

T. code : TBD Maintain the version for the budgeting financial year and activate the integrated planning in FI & CO if it is not maintained.

04 Check whether to copy strategic plan year 1 into version A00

T. code : TBD Check whether there is need to copy the strategic plan year 1 data into version A00 as starting point for budgeting

05 Copy strategic plan year 1 into budget version A00

T.Code : TBD Copy the strategic plan year 1 data into budget version A00 as starting point

06 Check whether to upload budget data from any of the sources

Manual Check whether there is need to upload budget data from any of the source like OCCAM, Retail Model, Gas Model, etc.

07 Upload Budget data (excel spreadsheets) in to SAP version A00 along with Accounting Adjustments(Costs budget into CO)

T.Code : TBD Upload Budget data (excel spreadsheets) in to SAP version A00 along with Accounting Adjustments using the standard SAP excel upload functionality.(Costs budget into CO)

The upload files are already created in SAP template format



08 Upload Budget data (excel spreadsheets) in to SAP A00 along with Accounting Adjustments(Balance Sheet / Revenue budget into FI)

T.Code : TBD Upload Budget data (excel spreadsheets) in to SAP A00 along with Accounting Adjustments(Balance Sheet / Revenue budget into FI) using standard SAP excel upload functionality.

The upload files are already created in SAP template format

09 Copy budget data from version A00 to B00 & Lock Version A00

T.Code : TBD Copy budget data from version A00 to B00 & Lock Version A00

10 Origin Submission 1 Manual Submit the first version of budget data to Origin

11 First Review completed by Origin

Manual First review completed by Origin

12 Copies the budget data from version B00 to C00 & lock version B00

T.Code : TBD Copy the budget data from version B00 to C00 & lock version B00

13 Management Accountant makes adjustment to the budget data (Costs) in SAP CO & B/S and Revenue in SAP FI using excel online in version C00

T.Code : TBD Management Accountant makes adjustment to the budget data (Costs) in SAP CO & B/S and Revenue in SAP FI using excel online in version C00 as per first review by Origin

14 Origin Submission 2 Manual Submit the Second version of budget data to Origin

15 Second review completed by Origin

Manual Second review completed by Origin



16 Copies the budget data from version C00 to D00 & lock version C00

T.Code : TBD Copy the budget data from version C00 to D00 & lock version C00

17 Management Accountant makes adjustment to the budget data (Costs) in SAP CO & B/S and Revenue in SAP FI using excel online in version D00

T.Code : TBD Management Accountant makes adjustment to the budget data (Costs) in SAP CO & B/S and Revenue in SAP FI using excel online in version D00 as per second review comments of Origin

18 Origin Submission 3 Manual Submit the third version of budget data to Origin

19 Third review completed by Origin

Manual Third review completed by Origin

20 Copies the budget data from version D00 to F00 & lock version D00

T.Code : TBD Copy the budget data from version D00 to F00 & lock version D00

21 Decide whether to make any Accountant Re-allocation / Leadership team adjustments

Manual Decide whether to make any Accountant Re-allocation / Leadership team adjustments

22 Accountant splits leadership adjustment / Accountant Re-allocation to the budget data (Costs) in SAP CO using excel online in F00

T.Code : TBD Accountant splits leadership adjustment / Accountant Re-allocation to the budget data (Costs) in SAP CO using excel online in version F00

23 Accountant splits leadership adjustment / Accountant Re-allocation to the budget data (B/S & Revenue) in SAP FI using excel online in F00

T.Code : TBD Accountant splits leadership adjustment / Accountant Re-allocation to the budget data (B/S & Revenue) in SAP FI using excel online in version F00



24 Copies the budget data from version F00 to final version F10 & lock version F00

T.Code : TBD Copy the budget data from version F00 to final version F10 & lock version F00

25 Lock Version for Previous Year

T.Code : TBD Lock budget version for Previous financial year

4 . 3 P R O C E S S F L O W D E T A I L S – F O R E C A S T I N G


Forecasting is carried out monthly by most business units. The forecasting process is not expected to fundamentally differ from the planning process other than in terms of frequency of execution, input template design and level of guidance documentation raised within the business. The basic roles and transactions involved in forecasting are almost same as for planning.

In Contact forecasting is incremental.

In Contact, plan data for costs is loaded in Controlling module and Balance sheet & revenue accounts are planned in FI module.

The objects for planning in Controlling would be combination of Cost Centre/Cost Element, Internal Order/Cost Element & WBS Element/Cost Element.

The objects for planning in FI would be combination of Balance Sheet account/Profit centre & Revenue Account / Profit Centre.

The source of forecasting data to/from SAP (directly or indirectly) is:

OCCAM (Optimisation tool based on hydrology)

Retail Model spreadsheet

Gas Model spreadsheet

E@R (Earnings at Risk)

Actuals of a month from SAP.

Capex and Depreciation spreadsheet (some of this will be calculated by SAP and some is expected to be manually calculated externally)

Other income spreadsheet

Routine Opex / Contractor Recoveries, meter lease spreadsheets

LPG Gross Margin spreadsheet


Other source

Budget data of first month if forecasting is for starting of year i.e. 2 month.

A matrix showing the “to and from” source flows will be finalised during realisation.

The planning data in the source systems are created in SAP upload format and are uploaded manually into SAP system using standard upload functionality.

Following versions and planning stages will be used in Contact for process of forecasting – (Current Month)

Tag Name Version

A Starting Point / Manager Adjustment A01

B Accountant Adjustments / Leadership Team Adjustments / Accountants Re-allocating Leadership team Adjustments

B01

C Earnings and Risk Loaded (submitted to Origin) C01

F Final Forecast F01

Versions naming convention is shown above as a starting point but may change during realisation phase to provide more logic or consistency in the budget/forecast planning cycle versions across Cost Objects. For forecast versions the period will be reflected within the version i.e. A01, A02, A03 etc. to retain each month’s forecast

Refer List of Draft Planning versions (Contact Planning Versions (Updared)

High level future state process of Forecasting in Contact -

For finance year 2010-2011, the forecasting data will be already completed for months July to October before SAP go-live; hence this data will be mapped and migrated into SAP system.

From next month i.e. October 2010 onwards, forecasting process will be continued in SAP system.

It is also ensured that versions are empty before performing any planning activity.

In Contact, forecasting versions for previous years and future years will be locked for avoiding posting of planned records outside the relevant planning cycle.

The Forecast will reflect monthly actuals and the forecast for the subsequent months, i.e. the first forecast (usually in August) will be based on the month 1 actuals plus budget for the remaining months. For subsequent months the forecast will be based on actuals for the preceding months, and the previous month forecast for the remaining months. There is no forecast undertaken in both the first and last months of the financial year.


A01 will be used as the starting point for forecast – budget managers will then make their forecast adjustments to this version

The forecasting adjustments made in A01 are copied to B01 where all subsequent Accountant adjustments are made

Earnings at Risk is loaded into C01 and submitted to Origin

Final forecast is copied into F01

The plan data is automatically updated to profit centres through the respective objects in CO.

The complete forecasting process is captured in ARIS process diagram.

Contact's Current Forecasting Process


4.3 .2 PROCESS FLOW DIAGRAMS – FORECASTING


Note: The ARIS process diagram covers the steps to be followed for processing of Forecasting, however relevant manual steps has been incorporated in order to show the process. Link to the ARIS Document: ARIS Document


4.3 .3 PROCESS STEPS – FORECASTING


01 Open posting periods for planning input in FI & CO

T.Code : OKP1 (CO)

T.Code : FB52

Open the planning periods in FI & CO

02 Check if forecasting version is maintained for new financial year

T.code : TBD Check if the forecasting versions is maintained in the new financial year

03 Maintain version for financial year and active integrated planning

T.code : TBD Maintain the version for new financial year and activate the integrated planning in FI & CO module

04 Check if the forecasting is for first month

Manual Check if the forecasting is for the first month of the financial year

05 Copy first month budget values F10 to forecast version in FI & CO

T.code : TBD If the forecasting is for the first month of the financial year, copy the budget values from version F10 to respective forecast version in FI & CO

06 Copy previous month actual to forecast version in FI & CO

T.code : TBD If the forecasting is for the second month onwards, copy previous month actual to respective version in FI & CO

07 Update forecast data to SAP version if required

T.code : TBD Upload forecast data in to SAP version (TAG A) if required.

Costs forecast into CO module and B/S and Revenue forecast data into FI

08 Decide whether to make any forecast adjustments

Manual Manager decides whether to make any forecast adjustments

09 Make adjustments to the forecast data

T.code : TBD Manager makes adjustments to the forecast data accordingly



10 Copy forecast data from version (TAG A) to (TAG B) and lock version (TAG A)

T.code : TBD After manager adjustments are made, copy the forecast data from Version TAG A to TAG B and lock version TAG A


Manual Decides whether to make any Accountant adjustments to the forecast data


T.code : TBD

Accountant makes adjustment to the forecast data

Costs adjustments in SAP CO module and B/S & Revenue adjustments in CO module in the respective version


Manual Decides whether to make any Leadership adjustments (high level) to the forecast data


T.code : TBD

Leadership adjustments are made to the forecast data accordingly



Manual Decides whether to split leadership adjustments to the forecast data


T.code : TBD

Splits the Leadership adjustments to the forecast data accordingly


17 Copy forecast data from Tag B to Tag C and lock version Tag B

T.Code – TBD

After the adjustments, copy the forecast data from version Tag B to Tag C and lock version Tag B




Manual Decides whether to make any adjustments by uploading the E@R forecast data

19 Upload E@R forecast data into SAP T.code – TBD

Upload the forecast data from E@R (Earnings and Risk) into SAP

20 Copy forecast data from version Tag C to final version Tag D and lock version Tag C

T.code – TBD

After all the adjustments are made, copy the forecast data from version Tag C to Tag D and lock the version Tag C

4 . 4 P R O C E S S F L O W D E T A I L S – P L A N V E R S I O N M A I N T E N A N C E


Version in SAP is used to record various plan data. Version 0 is the standard version for which actuals are recorded in SAP except NewGL (which is 1).

Contact will use versions for Strategic Plan, Forecasting, Budgeting, etc.

Versions for previous years and future years will be locked to avoid any posting of planned data.

Before loading of planning data, the period will be unlocked for the respective year.


4.4 .2 PROCESS FLOW DIAGRAM – PLAN VERSION MAINTENANCE


Note: The ARIS process diagram covers the steps to be followed for processing of Version Maintenance, however relevant manual steps has been incorporated in order to show the process. Link to the ARIS Document:


4.4 .3 PROCESS STEPS – PLAN VERSION MAINTENANCE


01 Send request to master data maintainer

Manual Send the master data request to Master Data Maintainer

02 Determine the approver

Manual MDM determines the approver for updating the versions

MDM forwards the request to Master data approver and request for

03 Approve or Reject request

Manual Master data approver will take action to Approve or Reject

04 Provide clarifications Manual If the request was rejected by Master data approver, MDM will provide clarifications accordingly

05 Check if the request is to create or Change

Manual After the request was approved, MDM checks whether the request is to Create new version or change the version

06 Create new version T.code – TBD Creates the new version accordingly in FI & CO module with all required parameters

07 Change the existing version

T.code – TBD Changes the version accordingly in FI & CO module

08 Inform the requestor Manual MDM informs the requestor with the relevant comments


5 STANDARD REPORTS

This section lists the standard SAP reports required to support the process.

Report Name Scoping Reference Description SAP T.Code or Menu Path

Security report showing access rights to planning templates

12.3.6 Report showing who has access to what templates

T.code : S_BCE_68001398

Headcount report and other SKFs 12.3.6 Headcount/FTEs by profit centre/cost centre/business unit etc. Budget, forecast and actual data.

T.code :TBD

T.code: Standard SKF reports

Cost Centre Planning reports S_ALR_87013611 Cost Centre: Actual/Plan/Variance

KSBP Cost Centre: Plan Line items

Internal Order Planning reports S_ALR_87012993: Orders: Actual/plan/variance

KOBP: Orders: Plan Line Items

Project Planning Reports S_ALR_87013532 Plan/Actual/Variance

CJI4 Project Plan Cost Line Items

Profit Centre Planning Reports S_ALR_87009712 Profit Center: Area list plan/act.

S_ALR_87013340 PrCtr Group: Plan/Actual Comparison


Report Name Scoping Reference Description SAP T.Code or Menu Path

KE5Y Profit Center: Plan Line Items

This is not an exhaustive list of SAP Standard reports


6 MASTER DATA CONSIDERATIONS

This section deals with the master data design considerations. Any specific business input to the master data design is captured within this section.

6.1 MASTER DATA – VERSIONS

Version in SAP is used to record various plan data. Version 0 is the standard version for which actuals are recorded in SAP.

Contact will use versions for Forecasting, Budgeting, etc.

Versions for previous years and future years will be locked to avoid any posting of planned data.

Before loading of planning data, the period will be unlocked for the respective year.


7 SAP DEVELOPMENT

The following sections describe the development work required to implement the processes described within this document. The required development may include the following:

SAP Gaps - Enhancements Interface Conversions Reporting Forms Workflows

Change Requests are listed in section 2.2.2 for all the new developments not mentioned in the existing scope.

7 . 1 S A P G A P S

No Description of GapL3 Process / Step

TypePriority C/H/M/L

Current Scope (or) New

Business Justification

839 Modelling Closed in L3 Scoping Workshop

841 Budget Coordination Tool Closed in L3 Scoping Workshop

840 Automatic updating core accounting system (ECC6) with plan data stored in BI

Closed in L3 Scoping Workshop


7 . 2 I N T E R F A C E D E V E L O P M E N T S

This section outlines the list of all interfaces for the process

No Interface Name and DescriptionL3 Process / Step

System to / from

Priority C/H/M/L



01 ICE 12.3.6 ICE to SAP H Current Budget/Forecast /Strat plan– extract from ICE to upload to SAP at a business unit level of detail

02 E@R 12.3.6 E@R to SAP

H Current Budget/Forecast /Strat plan - extract from E@R to upload to SAP at a business unit level of detail

03 SAP to ICE/E@R 12.3.6 Outbound from SAP

H Current Budget/Forecast /Strat plan - extract from SAP to load into ICE/E@R

05 OCCAM 12.3.6 OCCAMSpreadsheet to SAP

H Current Budget/Forecast /Strat plan. Actual & Statistical Data.Spreadsheet to be uploaded to SAP

06 Retail Model 12.3.6 Retail Model H Current Budget/Forecast /Strat plan. Actual & Statistical Data.


No Interface Name and DescriptionL3 Process / Step

System to / from

Priority C/H/M/L



Spreadsheet

Spreadsheet to be uploaded to SAP

07 Gas Model 12.3.6 Gas ModelSpreadsheet

H Current Budget/Forecast /Strat plan. Actual & Statistical Data.Spreadsheet to be uploaded to SAP

08 HFM (Hyperion) 12.3.6 SAP H Current Actual/Forecast/Budget data to HFM (included as Interface re process 12.2.1) - CHECK

09 Various budget spreadsheets, e.g. LPG Gross Margin Capex and Depreciation Other Income Routine Opex Contractor Recoveries Meter lease Statistical Key Figures

12.3.6 SAP H Current Budget/Forecast /Strat plan. Actual & Statistical Data.Spreadsheet to be uploaded to SAP

10 HR planning SAP H Current (from Forms section)

Budget /Forecast/Strat plan template for interface of HR related costs by cost element /cost centre. May include SKF e.g. Headcount


7 . 3 C O N V E R S I O N S

This section outlines the list of all conversions for the process

Ref # Data Object Source System Target System Current Scope (or) New Description

01 Budget Data – Amounts and SKF

Mozaic and numerous other spreadsheets, e.g. Revenue Analysis

ECC SAP Current Budget data for 2010-2011 by period. This will need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit Centre

02 Forecast Data - Amounts and SKF

Mozaic and numerous other spreadsheets, e.g. Revenue Analysis

ECC SAP Current Forecast data by period and version for current year (for October go-live this would be July – October 2010)This will need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit Centre

03 Strategic Plan Data – Amounts and SKF

Mozaic/ICE/E@R/Other spreadsheets

ECC SAP Current Strategic Plan data for 2010-2011 Strat plan by period. This will


Ref # Data Object Source System Target System Current Scope (or) New Description

need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit Centre


7 . 4 R E P O R T D E F I N I T I O N S

This section outlines the list of all non-standard reports identified for this process for financial and non-financial data (SKF).

No Report Name and Description Owner Type Metrics Included / Query /

KPI Measured

Parameters / Dimensions

Format

Drill Up/ Drill Down

Audience (1)

Source Freq


Priority (2)

01 SAP Planning templates

Management Accounting

TBD Templates in format that is easily understood by users and suitable for loading into SAP

Refer Forms section

Company codeFiscal YearPeriodEtc.

TBD NA Business Managers, Accountants etc

TBD Adhoc / monthly

Current H

02 Planning template outputs


ABAP

Output reports in format for loading into other systems (ICE, E@R, and HFM). Note that E@R currently uploads monthly transactions which are extracted from MOZAIC via a report. Could be a .csv files to these systems/models


TBD NA Accountants / Development and Acquisition

Planning data

Adhoc / monthly

Current H

03 Planning information


TBD Profit and Loss / Balance Sheet / OCAT / Cashflow statement / Capex by profit centre/cost centre/business unit.

Planning Data required by


ALV NA Business Managers, Accountants etc

Planning data

Adhoc / monthly

Current H


Geoff Walker, 02/26/10,

Added SKF data as part of feedback during Walkthrough/Approval workshop.


KPI Measured


Format


Audience (1)

Source Freq


Priority (2)

month and in aggregate for the plan period (full year, to year end and rolling forecast) as well as comparative data, i.e. current year actual/ forecast/ budget & prior year actual and budget.

Need statistical data (prices, volumes, and customer numbers) as well as dollar amounts.

Required by plan version also.

04 Financial Statements


TBD or Report Painter

Profit and Loss / Balance Sheet / OCAT / Cashflow statement as a consolidated version for Contact Group (taking into account consolidation entries) as well as for individual legal entities.

Planning Data required by month and in aggregate for the plan period (full year, to year end and rolling forecast) as well as comparative data, i.e.



Planning data

Adhoc / monthly

Current H



KPI Measured


Format


Audience (1)

Source Freq


Priority (2)

current year actual /forecast/ budget & prior year actual and budget.

Required by plan version also.

05 Capex planning data


TBD Capital Expenditure at various consolidated and detailed levels by period, financial year and total cost, e.g.Total CapexTotal Growth CapexTotal Stay in Business CapexTotal Generation GrowthTotal Geothermal GrowthTotal Geothermal Station Development GrowthTotal TauharaTauhara Drilling programmeMeter Types



Planning data

Adhoc / monthly

Current H

06 FI New GL - Actual v Plan version


Report Painter

FI new GL report to provide an aggregated view of actual v planned costs broken down into detail by cost element/ cost object, Profit Centre

Company code, Profit centre, Cost centre,Fiscal YearPeriod, Cost Object (dimension available in

TBD Drill down

Business Managers, Accountants etc

Actual and Planning data

Adhoc / monthly

Current H


Geoff Walker, 26/02/10,

Added during walkthrough/approval workshop.


KPI Measured


Format


Audience (1)

Source Freq


Priority (2)

FAGLGLEXT) Etc.

07BI Detailed Actual v Plan version


BI BI report to provide a detailed view of actual v planned costs broken down into detail by cost element/ cost object (cost centre, WBS, IO), Profit Centre and WBS type (Capex/Opex).

Company code, Profit centre, Cost centre,Fiscal YearPeriod, Cost Object (dimension to show CC,WBS,IO), WBS type (Capex/Opex)Etc.

BI Query Drill down



Adhoc / monthly

Current H

08 Rolling forecast report


BI This report is to show rolling forecast by version with variable period/year combination

Company code, Profit centre, Cost centre,Fiscal YearPeriod, Version Cost Object

BI Query Drill down



Adhoc / monthly

Current H

09 Plan version comparison


BI This report is to show strategic plan v budget or

Company code, Profit centre, Cost

BI Query Drill down

Business Managers, Accountant

Actual and

Adhoc / month

Current H



KPI Measured


Format


Audience (1)

Source Freq


Priority (2)

forecast by period and year centre,Fiscal YearPeriod, Version Cost Object

s etc Planning data

ly

(1) S= Strategic; M = Management; O = Operational (i.e. mainly used by operational teams)(2) C = Critical (i.e. mandatory, business cannot function without it/regulatory requirement); H = High (i.e. accessed widely, important to measure business function); M = Medium

(i.e. used selectively by target audient); L = Low (i.e. used sparingly)


7 . 5 F O R M S

This section identifies the Forms required to be printed from system to execute the process. Input forms may also be mentioned.

Ref. # Current Scope (or) New

Description

01 Current SAP Planning Templates

This applies to all Forms below.

Planning layouts for will be required for the following (by month, version, year, cost object and cost element):

1. Input of planning data for Strategic Plan and Budget2. Input of plan data for the Forecast 3. Input of planning data for Rolling Forecasts4. Input of Statistical Key Figures

Contact will use planning layouts with Integrated Excel functionality for exporting/uploading planned data to SAP.

The screen will be built up based on the planning parameters and will include the relevant planning layout. In addition, some extra Excel preformatted forms to support upload of information using the same planning layout.

For Forecasts and the Rolling Forecast an interactive SAP planning layout with values loaded for relevant period will be required. Values are populated based on the copying function of actuals, budgets (where applicable) and previous forecasts.

It is important that SAP Planning Templates are developed in a format that budget/project managers can easily populate, and the format is suitable for loading multiple cost objects (Cost centre’s, WBS, Internal orders) or Profit centres’ plans into SAP.

02 CurrentBudget /Forecast/Strat plan template for interface of HR related costs


Ref. # Current Scope (or) New

Description

Refer Interface Section 7.2 Budget /Forecast/Strat plan template for interface of HR related costs by cost element /cost centre. May include SKF e.g. Headcount

7 . 6 W O R K F L O W S

This section outlines the list of all workflows for the process

Name of the Workflow

Name of the Components/ Modules

Description of the Workflow Current Scope (or) New


SMT Budget Communication (early warning)

N/A Pre-budget communication to SMT. Early warning that budget is approaching and need to make time & resources available

Current De-scoped - Will be done manually (outside system). Phase 1 has no Budget co-ordination tool.

Planning Instructions

N/A Instructions to Budget holders re budget. Roles / responsibilities, timelines, assumptions to be used etc (refer section 3.1)


Plan data requires approval

N/A Email notification to relevant people (cost centre manager) etc when plan data requires approval. Event triggered – i.e. template has been completed by relevant user.



Name of the Workflow

Name of the Components/ Modules

Description of the Workflow Current Scope (or) New


Plan change N/A Email notification to relevant people (cost centre manager) etc when plan data has been changed. Event triggered.


Plan approved N/A Record stages of approval of plan data, e.g. Treasury sign-off, GM review. I.e. provide a view of which stage the approval is at throughout the process.



8 AUTHORIZATION & ROLES

This section provides a description of the roles associated with this process and activity. This will provide inputs to the authorization roles and authorization matrix document which is to be prepared during the realization phase.

Role Name Role Description Existing or New role within Contact

Management Accountant

Performs planning adjustment at various levels, uploads planning data, etc

Existing

Accountant Performs planning adjustment pertaining to Accountant, etc

Existing

Manager Performs planning adjustment pertaining to Manager, etc

Existing

Planning Accountant

Copies planning data, uploads planning data, etc

New

Master data maintainer

Maintains the version, master data maintenance, etc

New

Master data approver

Person responsible for change/create /blocking of master data.

New

Transaction code details

Ref Attachment Link


9 TESTING CONSIDERATIONS

The following table describes key scenarios which are recommended to be included in testing, including any specific risks or issues that should be given particular attention in testing. This list is not intended to be exhaustive but rather be used as input into the testing phase to ensure key considerations are adequately addressed as part of the identification and development of detailed test cases

Role NameDescription of Testing Requirement

L3 Process / Step

Priority (C/H/M/L)

Special Instructions

Respective Roles

End to end process of budgeting

12.3.6 H Master data should exist in the system

Respective Roles

End to end process of forecasting


Master data maintainer

Version Maintenance 12.3.6 H Master data should exist in the system

Allocation Accountant

Distribution and assessment cycles

H

Respective Roles

End to end process for Strategic Planning


Respective Roles

End to end process for rolling forecasting



10 CONVERSION IN IT IAL RULES

1 0 . 1 S A P O B J E C T S O U R C E ( F R O M L E G A C Y )

Data object identification from legacy systems.

Object Description Legacy Source System ReferencingBudget data Budget data for 2010-

2011 by period. This will need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit CentreAmounts and SKF

Mozaic/Exchequer/numerous spreadsheets, e.g. revenue analysis

SAP

Strategic Plan data Strategic Plan data for 2010-2011 Strat plan by period. This will need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit CentreAmounts and SKF

Mozaic /Exchequer/ICE/E@R/numerous spreadsheets, e.g. revenue analysis

SAP

Forecast data Forecast data by period and version for current year (for October go-live this

Mozaic /Exchequer/numerous spreadsheets, e.g. revenue analysis

SAP


Object Description Legacy Source System Referencingwould be July – October 2010)This will need to be loaded into SAP by Revenue/Cost Element and BS account)/Cost Object/Profit Centre

Amounts and SKF

1 0 . 2 H I G H L E V E L D A T A R E Q U I R E M E N T S

Data requirements for the history and anticipated volumes.

Data Data Components Length of History Anticipated Volumes

Budget data Planning 2010-2011 Budget &Previous Year data (i.e. current year and previous year Budgets)

Forecast data Planning Current Year (for October go-live July 2010 – Oct 2010 )&Previous year data

Strat Plan Data Planning Strategic Plan data for 2010-2011 Strat plan by period. )&


Data Data Components Length of History Anticipated Volumes

Previous year data

1 0 . 3 D A T A C L E A N S I N G R E Q U I R E M E N T S

Specific data cleansing requirements identified.

Data Object Source System Cleansing Requirements Anticipated Volume of Data to Be Cleansed

TBD

1 0 . 4 I N T E R I M P R O C E S S / C U T O V E R / D E P L O Y M E N T C O N S I D E R A T I O N S

Data or process considerations relating to interim processes required during cutover and or deployment.

Description of Impact Anticipated duration High level Description

Planning for Generation projects Integrations workshops/Deployment strategy will need to consider impact of planning objects required for Generation (Projects, Internal orders). Note that Internal Orders could be used to plan for Maintenance costs until Generation is implemented in SAP.


1 0 . 5 A R C H I V A L R E Q U I R E M E N T S – L E G A C Y S Y S T E M S

Data archival requirements as identified

Data Object Source System Archival Requirements Anticipated Volume of Data to be archived


11 BATCH REQUIREMENTS

Requirements for automating data processing jobs as batch runs.

L3 Process / Step

Batch Program Name and Description

FrequencyComments (Required variants if known)

12.3.6 Information of task which requires background processing will be updated and available in planning task list

Schedule Manager could be used as the central repository for Planning tasks.

Daily, Weekly, Monthly, etc,

Planning tasks to be finalized during Realisation phase


12 FUTURE CONSIDERATIONS

This section details considerations to be assessed by the Programme or Business at an appropriate time for future projects. This section may also records the dependencies, integrations and key decisions for open issues that relate to a future wave within the programme.

Number Details

1 At Finance wave go live the forecast/budget process requires the management accountants to coordinate the planning process with their business units. In future Contact would like to work towards a self-service model where budget holders will be directly updating SAP via Excel planning (or other interface/tool) with the aim of reducing complexity and minimizing time for completing the process. To do this additional training and SAP Licence's will be required for self-service users

2 Is the budget/ forecast practical in terms of having to load data into all sub modules and cost objects separately (for CC IO WBS Rev BS). To reduce complexity and minimize time Contact will need a customized front end or interface so budget/project managers can easily load their budgets/forecasts into SAP against multiple cost objects

Is a SAP based Planning tool required for this?

BI-IP Planning functionality will not be implemented in the Finance wave at Contact as per the Level 3 Scoping workshops. In future consideration may be given to implementing a SAP planning tool, e.g. BPO


13 OPEN ISSUES

This section contains all the Open Issues from the Programme Issues Register related to this process. Including a history of closed issues, not recorded as key decisions, if required.

Issue No

Name Description Notes

1 ICE/E@R – planning data will need to interface into SAP and may need to be at a lower level of detail than output currently.

Business need to determine level of BU required (PC group for Retail Gen Wholesale Corp etc) for reviewing ICE to see if we can get this breakdown for P&L and BS (BS – AP/AR/Assets/Inventory).

ICE will also need to provide planning data by other dimensions, i.e. location as well as legal entity (company code).

2 SEM-BCS Consolidation - do we need to take planning data to Consolidation module (open issue also in Group Close BPDD) – will the forecast /Budget from ICE broken down by business unit include the group position or do we need to run eliminations from SEM-BCS

Note: ICE assumes eliminations have already been performed at Company level.

This open item may change dependent upon resolution of item 1.

3 Confirm business requirement for conversion of any previous financial year’s budget/forecast/strategic plan data (actuals will be loaded into SAP for current year + previous year).

This includes Amounts and SKF


Issue No

Name Description Notes

4 Evaluate whether a single process for planning for Generation or other parts of Contact rather than planning on both Internal Orders and Project WBSEs.

5 Historical data to support Board and Ownership reporting requires last 5 years of statistical data (revenue analysis) would need to be uploaded into BI/BW to support this reporting.


14 APPENDIX

1 4 . 1 C O N V E N T I O N S U S E D

The process design is supported by a process flow chart. The following diagram depicts the flow chart conventions for the BPD process flow chart:

The diagrams of ARIS ‘models’ show the ‘relationships’ between ‘objects’ depicted by their ‘symbols’. Objects are representations of the real world entities (e.g. tasks, organisations, roles, etc.) that need to be modelled and analysed.

ARIS object related terms:

ObjectAn ARIS representation of a real-world entity (e.g. task, organisation, system, data item, etc.)

Symbol The visual depiction of an object in an ARIS model diagram

RelationshipThe ARIS representation of the interaction between real-world entities represented by ARIS objects.

ConnectionA visible relationship. The line connecting two objects in an ARIS model diagram denoting an ARIS relationship.

Occurrence An instance where an object is used in a model or in different models.

AttributesARIS modelling information stored for different ARIS items (e.g. models, objects, relationships and databases, users, user groups, font formats, etc.).

Properties The totality of all information (including attributes) about ARIS items.

The following symbols would be used to create the process models in ARIS:

EVENT

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Event

An event represents a state that is relevant in terms of business management and which influences or controls the further flow of business processes.

Events trigger functions and are results of functions. As opposed to a function which represents a time-consuming process, an event occurs at one point in time.

ARIS Events represent the changing state of the world as a process proceeds:

External changes that trigger the start of the process(e.g. “customer order received ”),


Internal changes of state as the process proceeds(e.g. “product manufactured ”),

The final outcome of the process that has an external effect(e.g. “order delivered to customer”).

Although events appear in the ARIS swim-lanes, but they are independent of the Positions, based on which swim lanes are defined.

FUNCTION

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Manual Function

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SAP function

A function is the technical task or activity performed on an object in order to support one or several business objectives.

ARIS Functions represent the activities or tasks carried out as part of a business process; ideally with each one adding some value to the business. Functions may be carried out by people or by IT systems. They have inputs (information or material), create outputs (different information or a product) and may consume resources.

Functions have a direct relationship with the Positions corresponding to the swim lanes where they lie.

PROCESS INTERFACE

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Process interface

A process interface is used to connect two different process flows. It has no active attributes affecting the process flow, but is only used as a break-point between two processes at the same level.

The linked model can be assigned to the process interface object

Process interface object is used to give a visual indication of the connecting models. The name of the process interface object is the name of a process, to which the hand-off is given/ coming from.

Although process interface object appears in the ARIS swim-lanes, but it is independent of the Positions, based on which swim lanes are defined.

Value Added Function


SAP value-added chain

SAP value-added chain

A Value Added Chain object is a set of coordinated processes, sub processes and elementary process steps, conducted by both people and equipment, which will lead to accomplishing a specific organizational goal.

Value Added Functions are high level functions used to describe the abstraction of the detailed process view. A value adding chain will give the highest level view of the end-to-end process. Value Added Function is used to describe the different levels in the processes. This can be further broken down to any level based on the process complexity.

Typically a Value Added Function will be a part of Value Added Chain Diagram (VACD) and will be used to depict Level 1 and Level 2 processes

POSITION

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Position The actors involved for planning, execution and control of

business process shall be captured in form of positions

In ARIS models, swim lanes are identified based on the Positions. All functions lying in a particular swim lane identified by a ‘position’ are under the responsibility of the particular person holding that position.

There may be multiple people, holding the same position – example Buyer. One person may hold two different positions, under different circumstances –example a single

person can be ‘Requestor’ at one point in time and ‘Requisitioner’ at the other point.

ORGANIZATIONAL UNIT TYPE

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Organizationalunit type

An Organizational Unit represents a particular entity/ participant as per company structure

Certain specific participants shall be represented as Organizational units. These participants shall be current organization, business units, external parties, partners, suppliers, customers or third party members associated with the organization. Example: Bank, System, Vendor etc.

FLOW OPERATORS


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XOR Rule

An XOR (Exclusive OR) operator is used to connect or split multiple paths in an exclusive fashion.

When used as an input, only one of the preceding paths can trigger the following function at a time.

When used as an output, only one of a number of exit routes is to be followed.

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AND Rule

An AND operator is used to connect or split multiple paths in a parallel fashion.

When used as an input, all of the preceding input paths must be completed to before the next function can commence.

When used after an object, there are two more possible outcomes from input path and all of the outcomes must exist based in any business scenario.Or... .

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OR Rule

An OR operator is used to connect or split multiple paths in a non-exclusive fashion, i.e. one or all of the paths may be followed

When used as an input, one or all of the preceding paths can trigger the following function. When used as an output, one or all of the number of exit routes can be followed.

CONNECTOR

Connectors depict the linkage between Business objects

Connectors demonstrate the transfer of data or the flow of a process , generally left to right or top to bottom

1 4 . 2 G L O S S A R Y

Refer to ET glossary of terms: ET Glossary

Terminology/ Acronym Description

SAP SAP standards for System, Application and Data Processing which is a software supports business functions

Company Code The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for



purposes of external reporting.

This includes recording of all relevant transactions and generating all supporting documents required for financial statements.

GL General Ledger Account

Document Type A key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted

Posting date Date on which a business transaction is transferred into one or more accounting ledgers on document entry

Document date The date on which the original document (such as vendor invoice) was created

Period Unit of time into which a fiscal year is subdivided. Company data can be analyzed on a particular date in each period. In accounting, a fiscal year can be subdivided into a maximum of 16 periods. The fiscal year itself is a period.

Fiscal year A period of usually 12 months, for which the company produces financial statements and takes inventory. A fiscal year need not correspond to the calendar year. Under certain circumstances, fiscal years containing fewer than 12 months are also permitted (short fiscal year)

Role The collection of activities that a person performs to participate in one or more business scenarios in an organization. Access to the transactions, reports, Web-based applications, and other objects contained in roles is through user menus.

Transaction Code Sequence of characters that identifies a transaction in the SAP System.

A transaction code can contain up to 20 characters and should always begin with a letter. Permitted characters are letters from A to Z, numbers from 0 to 9, and the underscore.

To call a transaction, you enter the transaction code in the command field and choose Enter.

Currency A medium of exchange in current use within a particular country.

Posting key A two-digit numerical key that determines the way line items are posted. This key determines several factors including the:

Account type

Type of posting (debit or credit)

Layout of entry screens

Interface Connecting point between two components in a system. Examples:



Technical interface (for example, the interface between two sets of hardware)

Software interface (for example, the interface between two programs working together)

Workflow Sequence of steps processed either by people or by the SAP System. The chronological and logical sequence of the steps, linked to the evaluation of conditions, is monitored by the workflow manager and can be controlled flexibly with event-related response mechanisms. From a technical point of view, a workflow is represented by a workflow work item (type F).

Client In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables.

Account Type Key that specifies the accounting area to which an account belongs.

Examples of account types are:

Asset accounts

Customer accounts

Vendor accounts

G/L accounts

The account type is required in addition to the account number to identify an account, because the same account number can be used for each account type.

Document The proof of a business transaction. A distinction is made between original documents and data processing (DP) documents:

Original documents include incoming invoices, bank statements and carbon copies of outgoing invoices.

DP documents include accounting documents, sample documents and recurring entry documents.

Whereas accounting documents are a representation of the original document in the SAP System, sample and recurring entry documents are simply templates to simplify entry of accounting transactions.

Cost Centre An organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on:



Functional requirements

Allocation criteria

Physical location

Responsibility for costs

Profit centre An organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Operating results for profit centers can be analyzed using either the cost of sales approach or the period accounting approach. By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers.

Program An ABAP program contains source code and can also include screens.

ABAP A programming language developed by SAP for application development. All R/3 applications are written in Advanced Business Application Programming (ABAP).

Dump Analysis A review of a program error. A dump analysis provides the developer with information about the cause of a program error and suggests possible solutions.

Transport The transfer of SAP System components from one system to another. The components to be transported are specified in the object list of a transport request. Each transport consists of an export process and an import process:

The export process reads objects from the source system and stores them in a data file at operating system level.

The import process reads objects from the data file and writes them to the database of the target system.

The SAP System maintains a transport log of all actions during export and import


Country Bank

Key

Bank Key

planning budgeting and forecasting bpdd

Documents

document document nameversion

document structure

document purpose

process flow details

approved planning budgeting

business objectives

master data considerations

data cleansing requirements