SAP Business Planning and Consolidation (BPC) is a robust planning awl consolidation application that can ifleet the organisation’s budgeting. planning. consolidation, and reporting requirements.
It supports the full array of top-down and bottom-up financial and operational planning needs as well as consolidation processes necessary to ensure the smoothest.
This function if your organization has its place of business in more than one country and/or does business in different currencies. Currency trans-lation is used in both planning and financial consolidation applications. The currency translation process allows business users to translate transactions to one or more reporting currencies.
This is applicable for an organization that has entities that do business with each other. A consolidated balance sheet of an organization shows transactions that relate to external companies. The transactions such as sales and COGS or receivables and payables that result from exchange of goods or services within the organization should not be counted. In these cases, it is essential to eliminate the intercompany transactions. The intercompany eliminations process creates entries that eliminate intercompany transactions.
Planning may take place at a high level, and you may later allocate the plan to lower levels. For example, you may need to allocate planned expenses incurred by the corporate office to each of its divisions based on some ratio, perhaps allocating corporate expenses to divisions based on the planned revenues of each division. The logic to perform this allocation is available in SAP BPC.