Case studies

Headcount Budgeting, Variance Analysis and Rolling Salary Forecasting in SAP BPC

SAP BPC implementation in a professional services company

Background

Project Scope:

  • Creation of a structured, decentralized budgeting solution that would support both bottom up headcount driver-based budgeting and top-down client  budgets and replace existing heavy excel based tools.
  • A rolling forecasting model and process for headcount & salary costs
  • Full variance analysis and forecast reporting (salary cost)
  • Integration with SAP ERP, including automated load of master data and hierarchies

Approach

  • Phase 1: Implementation of SAP BPC
  • Phase 2: Rolling forecast and financial reporting in BPC

Outcome

  • De-centralized budgeting tool giving more control over process to BUs while maintaining overview/consolidation power of the central team
    • Increased transparency in budgeting process
    • Automated driver-based budget calculation engine
  • Review of data quality in BW and SAP HR systems that gets in the spotlight
  • Availability of comprehensive variance analysis newly enables comparison btw. budget and actuals up to individual employee level
  • Budget model extended into 15-month rolling forecast giving additional simulation capability & insight on evolution of cost up to employee level to management
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