Functions for Balance Sheet Planning

Use

You use the functions described here for your enterprise’s balance sheet, profit and loss, and general financial planning. It deals with planning functions that - in contrast to the predefined and user-defined planning functions - are set up for the named planning tasks from the start. Using this function can help you solve standard tasks of planning with less effort required to configure the system.

Integration

The functions for balance sheet planning currently use key figures and characteristics, which represent the same business facts (for example, the planning item for which the function should generate postings). Since the key figures and characteristics, which you have to enter here are normally stable and only change very rarely, the functions for balance sheet planning offer you a cross-function role concept for characteristics and key figures, which should make it easier to work with these functions. The system transfers the characteristics or key figures, which you enter in a specific field of one of the functions, as a default value for all other functions, which you create new within the same planning area and which contain this field.

Almost all functions discussed here require the entry of a characteristic, which contains the planning items in order to execute postings between certain accounts. When you have created a function and entered the appropriate characteristic (for example, the characteristic 0SEM_POSIT from the SAP Business Content), the system will propose this characteristic when you enter a new function, which requires this entry. 

Prerequisites

Some of the functions that are relevant here require that certain, central basic settings have already been made in the system. For example, for account determination, the function assumes that the chart of accounts is maintained. On the other hand SEM-specific prerequisites do not exist for the use of functions.

Features

The following functions are available for balance sheet planning:

·        Depreciation
The function for depreciation enables the calculation of depreciation rates for specified assets in accordance with the requirements of double-entry accounting.

·        Repayment
This function enables you to calculate the period-based debit, which results from an investment, in the form of an annuity loan with a variable interest and repayment share.

·        Net Present Value and Internal Interest Rate
Both of these functions are used for the evaluation of the return on investment of a planned investment taking the planned cash flow into account. You can use both functions independently of each other however, they are very closely related and are therefore documented together.

·        Accumulate Balances
This function offers you support when planning individual key figures that are relevant to accumulate balances (opening balance, closing balance, inflows, outflows).

·        Account Determination
This function determines the corresponding offsetting account for the clearing entry belonging to it, in accordance with the valid chart of accounts to a balance sheet item planned by you.

·        Time Lag
This function is used for the time-related distribution of a business activity that is connected, as regards content, with a time-related activity (for example, the settlement of a receivable that is based on the delivery of goods).