What is SAP BPC?
SAP BPC Business Planning & Consolidation ( SAP BPC) is a web-based application that brings together financial management, planning, and budgeting into one comprehensive package. This is ideal for organizations that cannot handle all aspects of their business internally or are limited by resource and staff. By using a web-based application, the entire enterprise can access important information at anytime and on multiple devices.
Businesses no longer need to be hemmed in by IT departments, hiring and training additional personnel, or spending valuable time monitoring the status of various departments. The system is easy to use and customized for any size operation and can be immediately deployed to increase company revenues while cutting costs and freeing up valuable staff.
The Core Capabilities Of SAP BPC
Consolidation allows you to reduce your strategic goals, streamlines your processes, increases return on investment (ROI), and provides solutions to competitive challenges. You can create and maintain an enterprise resource planning (ERP) or a business turnaround plan from anywhere, at any time. The system is designed to track and optimize across all departments to help direct, plan, and deliver business functions. It also integrates with internal and external applications and is flexible enough to integrate with business procedures, knowledge resources, CRM, sales and marketing systems, supply chain management, manufacturing, human resources, manufacturing, and project management systems.
How SAP BPC Helps in Aligning Future Planning and Budgeting?
SAP BPC can reduce planning and forecasting time and helps in aligning future planning and budgeting. If properly implemented, it helps in achieving long-term ROI and improving productivity and profits
ERP systems provide the capability of creating and updating financial statements, working capital, inventory, and forecasting reports and projections. It is usually integrated with other accounting software and web-based applications. SAP BPC is a complete business solution that provides complete integration and scalability to an organization’s internal and external applications. It helps in improving overall productivity and efficiency of an organization. SAP BPC is one of the best things to happen to the finance planning industry since it has brought financial planning, risk management, budgeting and forecasting software together. Its success has inspired a number of other similar systems.
SAP BPC is capable of providing two highly powerful services – forecasting single application per department and forecasting single process per department. These are very useful in improving and streamlining internal operational processes and reducing the overall costs. Since it forecasts cash flow by running multiple scenarios through a collection of financial statements, SAP BPC can help in analyzing financial situations to develop effective strategies.
To meet the objectives of ERP and BPC, the financial planning and forecasting system need to be designed in a way that it can integrate all major functional areas of the organization. It should include functional areas like human resources, operations, sales, purchasing, accounting, finance, information systems etc. By doing so, one can come up with accurate projections of the key financial metrics. Since it is an information system, one can use various types of data sources for getting the necessary inputs. Data can be used from internal and external sources or from the company’s current activity to forecast future cash flows.
Since BPC involves the integration of financial reports, one needs to have good analytical skills to create suitable reports for the Planning Management System and the Finance Planning Cloud. The excel reports can be generated quickly using the in-built Microsoft Excel template that comes along with the software. Since most of the organizations have now started deploying these SAP S/4HANA tools to their internally as well as externally, it is important to engage stakeholders across finance and business in order to gain insights on how the tool can be made more useful for the organization. In this regard, data capture workshops can also be organized to provide the required information on how to maximize the benefits of BPC and its accompanying analytic cloud reports.