Balance-Sheet and Cash-Flow Planning with SAP NetWeaver BI

  • by Rajasekhar Gummapadu, Manager, Deloitte Consulting LLP
  • October 1, 2008
Balance-sheet and cash-flow planning helps you get your cash picture under control. Learn how to design a solid, flexible SAP NetWeaver BI data model for balance-sheet planning. Examine the five key steps required to create balance-sheet planning and cash-flow planning.
Key Concept

Balance-sheet and cash-flow planning using SAP NetWeaver BI Integrated Planning enable you to look to your company’s financial future, such as key financial ratios, accounts payable, accounts receivable, sales projections and costs, future earnings, and short-term and long- term cash positions. These financial projections aren’t just for global organizations anymore.

Although global and larger organizations are interested in knowing their consolidated short-term and long-term cash positions (based on their operational income statement and capital planning), it’s even more important for SAP NetWeaver BI planning resources to know these positions. They need to understand how to implement balance-sheet and cash-flow planning by using SAP NetWeaver BI functionality. The main objective of building the balance-sheet planning application is to generate a long-term cash-flow plan. You can use SAP NetWeaver BI Integrated Planning to implement a global, integrated planning solution for balance-sheet and cash-flow planning.

It’s common to implement income statement planning to monitor operational efficiency and to project an organization’s future earnings. However, in today’s global and more competitive business environment, you also need to know the effect that this operational plan will have on future balance sheet items and cash flow.

Why would you want to implement balance-sheet and cash-flow planning? For any of a variety of reasons including: projecting your key financial ratios; estimating your accounts payable and accounts receivable positions based on sales projections and cost of sales; estimating the interest income and expenses for the planning period and seeing how they will affect your future earnings; determining the cash-flow structure to verify the organization’s borrowing and paying capability; effectively managing your cash; maximizing the returns on your short-term cash investments; and effectively managing your balance sheet.

Rajasekhar Gummapadu

Rajasekhar Gummapadu is an SAP practitioner with more than eight years of cross-functional experience, more than half of which is focused in SAP implementation. He has strong technology and functional experience with SAP ERP solutions in the area of Business Planning and Simulation (BPS), SAP NetWeaver BI, SAP NetWeaver BI Integrated Planning, Business Consolidation (SAP SEM-BCS), Business Planning and Consolidation (SAP BPC) and FI/CO. Raj serves as the functional and technical lead in the area of financial planning and reporting-related implementations. He has successfully completed multiple implementations as project manager by using his knowledge to bridge the gaps between the business and IT goals. Raj is a qualified Chartered Accountant (India) and a Certified Public Accountant (USA). Deloitte Consulting LLP, its affiliates, and related entities shall not be responsible for any loss sustained by any person or organization who relies on this publication.

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