What is account-based calculation in SAP EPM-BPC - Business Planning and Consolidation?

SAP Term: account-based calculation

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: A business rule that reads and aggregates values posted to a combination of category-, period-, account-, flow type-, and data source-type dimensions, and posts the aggregated amount to an alternate combination of destination account-, flow type-, and data source-type dimensions

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• Key Concepts: 
  Account-based calculation is a feature of SAP EPM-BPC Business Planning and Consolidation (BPC) that allows users to create and manage financial plans and budgets. It enables users to define and manage accounts, such as revenue, expenses, assets, liabilities, and equity. Account-based calculation also allows users to define and manage account hierarchies, which are used to organize accounts into groups for easier analysis. 
  
  How to use it: 
  To use account-based calculation in SAP EPM-BPC Business Planning and Consolidation, users must first define the accounts they wish to use. This can be done by creating a new account or by importing an existing account from another system. Once the accounts have been defined, users can then create account hierarchies to organize the accounts into groups for easier analysis. Finally, users can use the account-based calculation feature to create financial plans and budgets based on the defined accounts and hierarchies. 
  
  Tips & Tricks: 
  When creating an account hierarchy in SAP EPM-BPC Business Planning and Consolidation, it is important to ensure that the hierarchy is properly structured. This will help ensure that the financial plans and budgets created using the account-based calculation feature are accurate and easy to understand. Additionally, it is important to keep the hierarchy up-to-date as changes in the organization’s structure may require changes in the hierarchy. 
  
  Related Information: 
  SAP EPM-BPC Business Planning and Consolidation also includes other features such as data entry forms, data validation rules, reporting tools, and more. These features can be used in conjunction with account-based calculation to create comprehensive financial plans and budgets. Additionally, SAP EPM-BPC Business Planning and Consolidation can be integrated with other SAP applications such as SAP ERP or SAP BW for a more comprehensive solution.