As a group, you are obliged to prepare consolidated financial statements that provide a comprehensive picture of your group’s financial position and performance.
Depending on the country, these must be prepared in accordance with certain accounting standards such as HGB or IFRS .
The preparation of these consolidated financial statements can become very complicated and costly the larger the group is and therefore takes up a lot of time and resources.
In addition, a fixed deadline is set by the legislator, which can lead to various consequences depending on the accounting standard (fines, sanctions, etc.) if it is not met.
The SAP Business Planning and Consolidation (BPC) tool can help you to better manage or even minimize the time and resources used.
The preparation of consolidated financial statements is a complex task that involves various challenges.
A key challenge is the consolidation of data from different subsidiaries, which often operate in different countries and business areas.
This requires careful integration of financial data from different accounting systems.
Currency translation and consolidation represent a further hurdle, especially when subsidiaries operate in different currencies. Exchange rate fluctuations can have a significant impact on the consolidated results and must be taken into account.
In addition, intercompany transactions must be correctly recorded and eliminated to avoid double counting.
This requires accurate tracking of transactions between companies within the Group.
Consolidation can be particularly challenging for complex group structures with multiple levels and numerous subsidiaries.
The quality and integrity of the financial data is crucial for the reliability of the consolidated financial statements.
Incorrect data can lead to inaccurate results.
It is therefore crucial to proactively address potential challenges and proceed carefully to ensure that the consolidated financial statements are prepared accurately, reliably and on time.
SAP BPC is an all-round solution that covers all operational and financial activities in a company.
With the help of SAP BPC, you can rationalize business forecasts, planning and consolidation measures in your company.
At the end of the day, you receive a uniform picture of your company’s financial situation and can make well-founded business decisions based on “what-if” scenarios.
You also benefit from a significant reduction in implementation, budget and completion cycles.
This is achieved through the use of a flexible data model and central administration.
The ability to create simple rules and reports by the specialist department and without programming knowledge also speeds up the consolidated financial statements in your company.
You can easily connect other reporting tools via SAP BW.
There is also a direct connection to SAP Analytics Cloud.
You can also freely define the data model and use it particularly flexibly for management reporting.
SAP BPC is available both on-premise and in the cloud.
In terms of target group and implementation options, SAP BPC is available in two variants – BPC Standard and BPC Embedded.