Reconcile Financial Data in a Complex Landscape

  • by Derek Johnson, Program Manager
  • Prakash Darji, Vice President and General Manager, Data Warehousing Solutions and SAP HANA Platform, SAP
  • May 1, 2005
As landscapes become more complicated and involve a plethora of sources, a reconciliation method becomes more crucial in reporting financial information. Analysis Process Designer (APD) can help reconcile your financial data.
Key Concept
While Analysis Process Designer is typically associated with building CRM analytical applications, you can use it to build analytical applications in other areas. Such applications include processes to help reconcile financial data in a financial landscape that has multiple financial journals and to calculate values based on the data.

When companies integrate their financial data using SAP and BW, they must develop processes to aid in the reconciliation of data. We’ll describe two reconciling scenarios to show you how BW can simplify the daily reconciliation of multiple financial journals. The scenarios use the generic data model structure and data mining tools to identify entries that need to be adjusted. While reconciliation is required in multiple scenarios, we’ll focus on using the data mining toolset in the following two situations:

Scenario 1: A company needs to reconcile its balance sheet with its income statement, as the current year earnings line on a balance sheet is the net income for the fiscal year to date. We’ll describe a technique for identifying any variances that occur between the income statement and balance sheet. You then can correct any variances.

Scenario 2: A company needs to reconcile its non-SAP and SAP financial information when the raw data is coming from each of its source systems, with only higher-level journal entries being posted to SAP from these ancillary source systems. We’ll explain a technique for identifying and correcting these variances within BW so that financial information matches the financial book of record. The corrective technique is most appropriate for open periods when timing issues result from feeds from multiple systems.

Derek Johnson

Derek Johnson is a program manager on the Delivery Operations Team with SAP America, Inc. He is responsible for the design and development of analytical and reporting applications to support SAP America’s consulting organization. Formerly a platinum consultant with the National Competency Center (NCC), he has more than 10 years experience working with SAP NetWeaver BW. Besides traditional data modeling and reporting, he also has extensive experience with Yahoo! Widgets, SAP NetWeaver Visual Composer, Web reporting, BW data mining, Xcelsius, ABAP, and JavaScript. He holds a BS degree in engineering from the University of Michigan-Ann Arbor, an MS degree in engineering from Wayne State University-Detroit, and an MS degree in management information systems from Case Western Reserve University-Cleveland.

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Prakash Darji

Prakash Darji is an experienced professional with more than 10 years of end-to-end experience in enterprise software. He has a broad depth of experience including corporate strategy, sales, product management, architecture, and development. He has experience in product launch activities, including positioning, packaging, and pricing. He has delivered numerous product releases in a variety of capacities through his career. He thrives on building high-performing, scalable teams to achieve strategic deliverables, whether they close strategic sales deals, roll in product features, or roll out new releases. He is a recurring author for several publications and a speaker at SAP conferences around the world. Prakash is on LinkedIn at

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