Integrated Planning of Operating Expenditures (OPEX) - A model to apply best practices when running ERP and DWH systems

Abstract

Controlling departments are confronted with complex and time-consuming OPEX (Operating expenses) planning processes several times a financial year. Medium-sized enterprises and (multinational) corporations usually use Enterprise Resource Planning (ERP) and Data Warehouse (DWH) systems to support, integrate and automate their business processes. ERP and DWH provide a wide range of functionality and features to support planning processes, however since OPEX planning processes are often complex and problematic, it can be challenging to decide which planning activities should be performed in the ERP and which in the DWH system. This paper proposes a model to identify for each one of the main planning activities, when they should be carried out into the ERP system or in DWH according to best practices. First, the OPEX planning process is analyzed in detail, identifying the main phases and activities and revealing inefficiencies. Then, the purposes and best practices related to ERP and DWH systems will be reviewed and outlined. Thereafter, we will formulate our model detailing the best practice for each concerned planning task. The model subsequently developed describes in detail the best practices for each planning task concerned. Finally, this model is applied to a real use case in the context of SAP S/4HANA as ERP system and BW/4HANA as DWH system. This paper is aimed at controllers and their finance and controlling departments, as well as IT-ERP and DWH consultants involved in business planning processes.