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Financial model advice

Former Member
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I'm shortly to be undertaking a project to produce a set of consolidated statutory accounts in BPC.

Being more experienced in using TM1, I would generally start by setting up three cubes/models for P&L, Balance Sheet and Cash flow due to the different dimension requirements of each. However, our mgmt. accounts model has all these elements in one cube which makes me question the best way to do this in BPC.

Any recommendations as to the most appropriate way to do this in BPC? Appreciate that there might not be a right answer but would like to understand the pros and cons of each method.


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Former Member
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Hi,

I have done a number of BPC for legal consolidation jobs and have always had three models in my environment, one for rates, one for ownership and one for the rest. I am not quite sure what the different dimension requirements are between the balance sheet, profit and loss and cashflow in your case, but I would think having those in separate models would create issues on most of the business rules such as currency conversion and eliminations. For example, how would you be able to post the difference from your ic payables and ic receivables to the profit and loss statement if that is in another model?

BR,
Arnold

Former Member
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Thanks for the feedback.

For instance, in reporting P&L data I would be required to have some way of breaking it down by region - sales/operating profit for Europe/Americas/Asia. So I would need a dimension that enables P&L data to be split in this way. I don't need that dimension for balance sheet information or cash flow. In the Balance Sheet I would need to have a dimension that enables me to have the opening balances and the various movements to get to a closing balance. I don't need this in the P&L.

Are models typically stand alone? Can you have some script logic in one model that when triggered writes to another model?


Former Member
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Hi,

in the MS version you can have a script that writes data from one model to another (in the same environment) but you cannot trigger a script in the receiving model.

In a consolidation model you will usually find a dimension that shows the flow from opening to closing balance which also has a member used on P&L data, so outside the hierarchy of the balance sheet flows.

You can use the same logic on a dimension for segments, simply have a member for non-segment which you use on balance sheet accounts.

Former Member
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Thanks again.

In having additional members that aren't required for a subset of accounts, does this cause any issue with model size (memory requirements, sparsity of data)? Probably not, given your answers!

Looks like a combined model is the way to go.

Regards,

Bryan


Former Member
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It hasn't caused issues for me so far and is also the way recommended by SAP. If you look at their IFRS starter kit, which is set up in this very same way.

BR,
Arnold

Former Member
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Thanks for your help!