for Budget Planning & Rolling Forecast

transcript

for Budget Planning& Rolling Forecast

FESA Planning

Website: http://www.fesa-s.comEmail: avesta@flexsystem.comLast update: 23-Dec-2013

Scope of Solutions & Services Mix

Level of

Investm

FESA Query

FESA Planning

FESA Financial

FESA Consol

FESA Professional

Accounting

FESA Analyst

Budget Planning & Rolling Forecast

Management Reporting

Regional Financial Management

Group Consolidation & Budgeting

Multinational Financial Management

Analytical Performance Management

FESA Consolidation Series

FlexSystem

Enterprise

Software

Architecture

Web & Windows Login Client

Step 1: Introduction

Step 2: How Does it Work?

Step 3: Demonstration

Step 4: Upgrade Plan

Agenda

About Planning

Sales department updates sales forecast every day

IT department prepares annual IT budget for 201X

Brand manager monitors variance of actual cf budget

Your ERP systems responsible for historical data

Finance Manager responsible for cash flow projection

Management demand for managing future proactively

HR manager analyze HR plans provided by line managers

About Challenges of Planning

Substantial time are involving data manipulation rather the core work of planning and analysis

Nightmare of using linked formulas amongst different spreadsheet files

Difficult to ensure the correct version of forecast

Very time consuming to consolidate different budget scenarios

High frequency of errors and difficult to identify the source of errors

Internal auditor identifies current weakness of budgetary control system

Extended time for new staff to learn and practice the tedious processes of data manipulation

Solving Issues Arising from Aggregation & Versioning

FESA Planning

Aggregation Computing Issues

Simplex form of aggregation• 1 + 1 = 2

Most common aggregation functions• Sum(), Count (), Max(), Min()

Assumptions (Based on standardized data source)• Measurement and recognition rules• Chart of accounts • Reporting currencies• Data file formats• Presentations of transactions or trial balances

Example• Each company of a consolidation group furnishes

standardized transactions, vouchers or trial balances to their headquarters for aggregation in order to prepare different kinds of summary reports (i.e. aggregation scenarios)

Key problems encountered by headquarters• Issues of unexpected speed and accuracy when

Many data files Many rows and many columns for each data file Following are examples of column name:

Many amendments of data files Identifying missing and duplication of data files Frequent reporting, from monthly to weekly to daily to…

• Issues of security control Send data through email system to wrong recipients

Ledger code Voucher date A/C period Account code

Business unit Department Project Branch

Currency code Org amount Exchange rate Eqv amount

Quantity Unit code Unit price Particulars

Aggregation scenarios• Scenario 1: Aggregation for strategic management

Five-year budget planning with multi-scenario analysis Acquisition and disposal decisions

– Capital asset, legal entity, branch, product line

• Scenario 2: Aggregation for operational management YTD actual profit and loss by business unit by month Monthly forecast by business unit by department Actual cf budget scenarios cf rolling forecast versions Sale-thru analysis by different dimensions

• Scenario 3: Aggregation for statutory compliance YTD actual consolidated trial balance by company by the

following GAAPs:– PRC GAAP– US GAAP– HK GAAP– Japan GAAP

An example of dynamic on-line aggregation

Versioning Computing Issues

Definition• Versioning means version control over data processing

and/or reporting based on same sets of assumptions• It shall be differentiated from aggregation scenarios

Two types of version control• Version control for audit trial purpose• Version control for reporting purpose

Version control for audit trial purpose• Who, when, how about the submission of data files• Who, when, why about the subsequent amendments• Who, when, what about the authorization of data postings• About the status of process: pending, completed, fail

Version control for reporting purpose• Q1, Q2, Q3, Q4 version of rolling forecast

Key problems encountered by headquarters• Manually assign version number of file and folder name

Problem to support multi-user enquiry Not easy to maintain completeness Issue of security control

• Implement standalone document management system Can keep every version of data file upload itself rather

than post and store relevant raw data within database It cannot support to automate aggregation, so it cannot

support the retrieval of particular version of consolidated rolling forecast

An example of versioning for audit trial purpose

An example of versioning for reporting purpose

FESA Planning

Sales & Marketing

Production

Logistics

HR & Admin

Time Dimensions- Daily / Weekly- Monthly / Quarterly - Yearly - Month-To-Date- Year-To-Date

Business Dimensions- Income / Expense- Assets / Liability- Off/Post-Balance Sheet- BU / Department- Project / Product

Location Dimensions- Branch- District- City- Country

Other Dimensions- Version / Scenario- Internal / External- Currency / Amount- Quantity / Statistics

What is FESA Planning ?

Sales & Marketing

ProductionProduction

LogisticsLogistics

HR & Admin

FESA Planning

Budget

Projection

Forecast

Actual

BudgetBudget

ProjectionProjection

ActualActual

ForecastForecast

Variance Analysis

Budget

Projection

Forecast

Actual

BudgetBudget

ActualActual

ForecastForecast

HR & Admin

C&B Code

Amount

Currency

Location

Department

Company

Grading

Position

Business Unit

Budget

ProductionProjection

Actual

Forecast

ActualActual

BudgetBudget

ForecastForecast

C&B Code

• Basic Salary• OT• Commission• Double Pay• Performance Bonus• Share Options• Housing Allowance• Medical Insurance• Life Insurance• Holiday Pay• MPF• Sick Leave• Exam Leave• And More

Finance

Period

A/C Code

Amount

Currency

Location

Department

Company

Project

Version

Scenario

Business Unit

BudgetActual

Forecast Projection

ActualActual

BudgetBudget

ForecastForecast

Finance

A/C Period A/C

Amount

Currency

Location

Department

Company

Project

Version

Scenario

Business Unit

BudgetActual

Forecast Projection

BudgetBudget

ActualActual

ForecastForecast

StockMembership

Purchase

BudgetActual

Forecast Projection

ActualActual

BudgetBudget

ForecastForecast

FESA Planning

Budget

Projection

Forecast

Actual

BudgetBudget

ActualActual

ForecastForecast

Save TimeShortest time for implementation

Save EffortsAvoid disruption of day-to-day operations

Save Money Commit minimum capital investment

Mitigate RiskWalk away from associated risks of ultimate complexity

Start and Growth FESA Planningwith an Entry Point Package

Agenda

Records to Reports (R2R) Framework

FESA DBMSEXCEL FILES

Support Highly Flexible Formatting of Spreadsheet Data

“Pivot Table Like” or “Column” Form: it can support Incremental Based Budgeting

“Transaction Like” or “Row” Form: it can support Zero Based Budgeting

We classify formatting of spreadsheet data into two main classes:

Support Data Rewritable Methodology

User can assign Segmental Rewrite Code to their date entry form so as to rewrite posted data associated with specific dimensions such as company, department and version:

For example:

HR01 represents data entry form responsible by HR department to maintain version 01 of data set

SALE01 represents data entry form responsible by Sales department to maintain version 01 of data set

Hotel Business

Room F&B Other Business

Telecom Golf & Shop

Health Club

Parking Garage

Rental

HR Finance Admin Marketing Property Utilities

An Example of Report Package

Planning Process Management

Support You to Configure Authorization & User Access Right

Pending

Completed

Restored

Status

1. Data File Upload

User A 2. Posting

User D

Workflow Scenario 1

Pending

Validated

Completed

Restored

Status

1. Data File Upload

User A User B User C

2. Validation Only 3. Save as Batch 4. Posting

User D

Workflow Scenario 2

Provide Comprehensive Audit Trial

Provide comprehensive enquiry function for administrator or auditor to monitor and audit data processing activities

Agenda

Planning Process Management

Conclusion

Fast and flexible for the implementation of budget and rolling forecast scenarios.

Very user friendly to allow financial users to configure

and monitor variances with differing combinations of budgets, current / prior year actuals and multiple versions of rolling forecasts.

Outstanding performance of R2R processing so as to

enable you to minimize your lead times for budget planning, rolling forecasts, monitoring, and decision making.

Improved internal controls throughout the whole

process of budget planning and rolling forecasts so that decision making is based on reliable information.

Agenda

Scope of Solutions & Services Mix

Level of

Investm

FESA Query

FESA Planning

FESA Financial

FESA Consol

FESA Professional

Accounting

FESA Analyst

Budget Planning & Rolling Forecast

Management Reporting

Regional Financial Management

Group Consolidation & Budgeting

Multinational Financial Management

Analytical Performance Management

FESA Consolidation Series

for Budget Planning & Rolling Forecast

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