Matrix consolidations in SAP BPC NWWhen determining your consolidation requirements, one of the key points of discussion should be whether you need statutory or management consolidation.
Statutory consolidation focuses on producing quarterly and year-end financial statements that will be disclosed to the market. A management consolidation focuses on internal perspectives and may have a different granularity than the statutory reporting. Management reports are typically used at the end of any given reporting cycle (actual/budget/forecast, etc.) and allow the management to assess the performance of their business.
To support the statutory consolidation, BPC uses entity, intercompany and group dimensions whereas management consolidation usually is performed using profit centres, product lines or region dimensions. While the frequency and objectives of each type of consolidation may be different, these consolidations are based on the same single set of data, producing consistent results at total and subtotal levels.
Whilst statutory consolidation uses complex structures with different ownership percentages and different consolidation methods, management consolidation usually can be performed using simple structures and without the need of applying ownership percentages. Translating these requirements into BPC, statutory consolidation uses eliminations and adjustments business rule whereas management consolidation is performed using US business rules.
In previous releases of BPC, the US elimination business rule could only be used with E – Entity and I - Interco type dimensions and only one E – Entity type dimension was allowed per model. As an example, having in the same model entity and profit centre dimensions and using the entity dimension in the elimination and business rule and profit centre in the US business rule was not possible. These limitations were pushing implementation teams to build two separate models, one model to perform statutory consolidation and another model to perform management consolidation, creating data redundancy and increasing the complexity of the implementation.
The release of SAP BPC 10.1 NW SP6 introduced the enhancement to successfully perform statutory and management consolidation in a single model, also known as matrix consolidation. This is done by making the existing US Elimination rule executable on a dimension other than the Entity dimension.
How to implement matrix consolidations
Once the system is upgraded to 10.1 NW SP6 or later, the parameter “ENABLE_MATRIX_US_ELIM = X” model level IMG parameter needs to be added. This option will allow the selection of a U – (User Defined) type dimensions inside the US Elimination business rule, so a separate pair of Entity/Intco dimensions can be used for US elimination other than legal consolidation in a single consolidation model.
Once the parameter is added, business users can create and define two U-User defined dimension (e.g. profit centre and trading partner) which will work as Entity and Intco type dimension in the US elimination. There are some requisites when creating these dimensions as defined in 2254535 - Enhanced US Elimination to support Matrix consolidation OSS note.
Trigger matrix consolidations
US elimination still need to be executed via logic script. New enhancements have been added.
- Keyword ‘GROUP’ now can filter the given group id and its subgroups when the related parameter is enabled
- A new keyword ‘KEYDATE’ can be used in US Elimination logic script to leverage time-dependent hierarchy. If user doesn't specify keydate in the script, the consolidation engine will use the current date as keydate.
CATEGORY = %Category_SET% Mandatory
GROUP = %Group_SET% Optional
CURRENCY = %RPTCurrency_SET% Optional
TID_RA = %Time_SET% Mandatory
KEYDATE = YYYYMMDD // e.g. KEYDATE = 20141220 Optional
OTHER = [ENTITY=%Entity_SET%] //The entity dimension here means the Entity dimension you selected in the US Elimination rule.
2254535 - Enhanced US Elimination to support Matrix consolidation