SAP BPC Architecture

Most organizations need a tool that should manage their business operations and applications. Today we have come with an ERP tool that helps various enterprises across the globe to manage their business activities. In this blog, we are talking about SAP BPC (Business planning and consolidations) tool. Let us learn about the purposes of BPC, the Architectural overview, and its applications. So, Let’s begin the concepts of the SAP BPC.

Introduction to the SAP BPC (business planning and consolidation):

The SAP BPC (business planning and consolidation) tool is designed to automate and streamline the consolidation activities, business forecast, and planning in the organizations. It also supports the organizations to maintain their business operations and financial activities. The SAP BPC tool integrates with all the SAP H/4 HANA functional modules that allow you to perform truly integrated sales, manpower management, and production activities. 

The SAP BPC supports two types of migration versions, they are:

  • SAP Netweaver 
  • Microsoft Excel

Let me explain them briefly;

The Microsoft excel version supports modeling, data importing, application maintenance, adding transformations and creating scripts. It combines the power of the Microsoft Excel that offers users EPM (Enterprise power management) solutions, in the application development process, it acts as a collaborative tool with robust and readily accepted environments.

The SAP Netweaver version supports the RESTFul connection to the ABAP and supports regular access to the user interfaces. It always supports client-side logging functional capabilities.

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SAP BPC architecture:

The SAP BPC architecture uses both versions (Microsoft Excel and Netweaver). They support various business rules and script logic for preparing the planning. The key components of the SAP BPC are shown in the below image:

SAP BPC Architecture

Important factors about the SAP BPC architecture;
  • For any BPC business-standard model, the SAP ERP environment recommends using the EPM plug-in.
  • For the BPC embedded model, the SAP ERP environment recommends using the analysis plug-in due to its superior integration into the business warehouse metadata transactions. 
  • The EPM plug-in also has a few architectural limitations, so it will reduce the functional enhancement of the embedded model.
  • Both the EPM and analysis plug-ins will be managed and developed as a part of the analysis office releases based on the SAP recommendations.
  • SAP has invested in improving the BPC tool because of the Microsoft Excel capabilities it offers.  
  • According to the Gartner report, the BPC’s Microsoft excel version is truly exceptional and the best on the market. 

In addition to the BPC’s financial capabilities, it is also a robust analytical application development platform. It has developed in such a way that, it is capable of solving a variety of business needs to reach customers’ expectations. 

The BPC tool allows their customer to be nimble and dynamic while designing their business planning and expanding their application development to grow or make any changes as per the customer needs.

Key features of the SAP BPC:

This section of the post explains the key features of SAP BPC:

  • Proven stable platform, but rigid financial planning and partially integrated.
  • A flexible tool that provides a standalone planning solution with data replication.
  • Powerful SAP H/4 HANA in-memory accelerations.
  • Offers real-time data access- limited or No replication of data.
  • SAP BPC is also known for its universal journal as the foundation.
  • Shared master and transactional data across the ERP environment applications.
  • Single and integrated environment.

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The SAP BPC benefits:

The below factors give a reason why SAP BPC?

  • The SAP BPC is a component of the SAP EPM (enterprise planning management). It’s an application dedicated to financial processes on a binding platform.
  • Accept by the business and designed for the backend user, it is the target environment to support planning and financial reporting.
  • SAP BPC can be initially implemented to address one business process such as management consolidation but quickly be extended to address other processes such as business modeling, planning, and budgeting.
  • This organic scalability is a distinct differentiator of SAP BPC’s unified platform. 
  • Diminish effort to produce information and reduced cycle times for budgeting/ forecasting, and consolidations.

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SAP BPC terminologies:

If you are a BPC consultant, then it is mandatory to have terminology knowledge.  The below  are the few SAP BPC terminologies;

  • Environment: it is a starting point for creating any model or application. Before it was called an Application set or AppSets.
  • Dimensions: The user can define the dimensions as secure. You need to grant read and write access to the users who use the models so they access the data.
  • Properties: this terminology provides additional information to define the dimensions.
  • Dimension members: Each dimension member consists of shows master, texts, and hierarchy data associated with the key dimensions.
  • Model: To meet the business planning and consolidation requirements, a model is needed. So you need to build a model, that should define the collection of dimensions.
  • Data manager package: The data manager packages help to execute the various BPC tasks.
  • Business rules: business rules are an essential part to manage business operations in different countries. The SAP BPC consists of rule-based tables to meet the business and consolidation requirements. In a few cases, when rule-based tables are failed to meet the business and consolidation requirements by the time a logic script can be used to achieve the business requirements.  
    Here we would like to mention important business rules;
    • Currency translations.
    • Balance carry forward
    • Intercompany eliminations.
    • Data validations.
  • Logic scripts: the logic scripts are defined as a set of SQL and MDX programming structures to perform a few customized operations like flexibility and managing data models. 
  • User: A user is defined as an individual who uses the app set in their organization.
  • Team: the team is nothing but a group of users based on the roles.
  • Task: all the activities that are performed in the BPC system are known as tasks.

Top 30 frequently asked SAP BPC Interview Questions !

SAP BPC applications:

An application in BPC is defined as a multidimensional data model used in the EPM system. A few examples for applications are operations, legal, and finance team.

There are two types of BPC applications, they are;

  • Reporting applications
  • Non-reporting applications

Reporting applications are used for analytical purpose and also enables you to pass the input data from the users. Whereas Non-reporting applications are used to define the reference data such as currency rates and carry forward balance etc.

An APPset consists of one or more applications in the organization. Each application incorporates the master data for an application that also controls the data flow in the system. 

Below are the important parameters used in the applications:


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The main aim to design the SAP BPC post is to help our ERP audience who are all looking to master themselves in their respective field. The SAP BPC is one of the popular business tools and helps every organization to maintain their business operations and financial planning. You will get the SAP BPC either in Netweaver or Microsoft Excel versions, choose the version as per your business demands. The article on SAP BPC Architecture helps SAP business professionals to hold a core knowledge of the tool. We hope this blog has reached our audience as much as possible and adhere to learning more about SAP ERP modules.

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Kavya Gowda
Kavya Gowda
Research Analyst
Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.