Stan's SSOT Forecast Model - Accruals Focus

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SSOT Forecast ModelAccruals

Stanley Chan


SSOT Forecast Model

• Shows Commit, QTD Actuals, and pending PRs, X-Charges, Accruals, and any other pending items to create Forecast

Accrual ReversalYES

UCVS FETCH QTD FinABC FinABC M3 Pending AdjFUNCTIONAL Q3'15 TOTAL PENDING PENDING PENDING ACCRUAL Pending MISC Q3'15

GROUP COMMIT EXPENSE QTD PRs DEBIT XC CREDIT XC ADJ Items ADJ FORECASTSalary $1,271,705 $1,220,196 $87,264 $1,307,460 ($35,755)Overtime $371 $371 ($371)CommissionsOther Compensation $365,276 $372,687 $1,126 $373,813 ($8,538)Fringes $446,461 $423,224 $38,387 $461,611 ($15,150)60827-Headcount XC Debit $50,000 $50,000 ($50,000)60828-Headcount XC Credit ($110,000) ($110,775) ($110,775) $775HC Related $1,973,441 $1,955,703 $126,777 $2,082,480 ($109,039)Temporary Labor $73,088 $7,944 $81,032 ($81,032)Advisory Services $1,225 $1,225 ($1,225)Project Based Services $12,187 $125,598 $137,785 ($137,785)Outsourced Services $2,604,192 $1,041,064 $609,424 $1,041,002 $2,691,489 ($87,297)61903-Contracted Services XC Debit $1,222,000 $1,178,067 $1,178,067 $43,93361904-Contracted Services XC Credit ($20,000) ($20,000)Outside Services LegacyOutside Services $3,806,192 $2,305,631 $609,424 $1,174,543 $4,089,598 ($283,406)Air Travel $14,000 $17,020 $17,020 ($3,020)Other T&E $24,000 $94,327 $94,327 ($70,327)Travel & Entertainment $38,000 $111,347 $111,347 ($73,347)Training $20,000 $3,746 $3,746 $16,254Recruiting/Relocation $21,000 $21,000 ($21,000)Equipment $985,500 $292,065 $436,847 $728,912 $256,588Software $100,000 $1,799 $1,799 $98,201Telephone $739,000 $732,367 $55,020 $7,200 $794,587 ($55,587)Depreciation $742,641 $1,247,163 $1,247,163 ($504,522)

Office Operating Expenses $937 $937 ($937)Postage & Freight $265,000 $443,355 $443,355 ($178,355)Product PromotionsTrade ShowsAdvertising/P.R. $24 $24 ($24)65303-Discretionary XC Debit $318,000 $258,747 $59,160 ($143,000) $174,908 $143,09265304-Discretionary XC Credit ($7,150,132) ($7,053,969) ($47,943) ($7,101,912) ($48,220)

Other Discretionary ($6,567,132) ($6,350,905) $59,160 ($47,943) ($143,000) ($6,482,688) ($84,444)

VARIANCE


SSOT Forecast Template Tabs

• These are the active tabs used to get all the details possible for an accurate forecast

Refresh via Essbase to pull Commit and Actuals by Month by GL Account

From drop-down menu, select FETCH to highlight all fields and refresh

High-Level view of all management nodes. Refresh to compare prior actuals vs. current.

Drill into Actuals to get “details” for (1) GL Data, (2) AP, and (3) Open PO

GL Data shows all actuals by GL account, department, and cost pool.Columns A - AA

AP Details shows all invoices that have hit the GL. Compare to your PR Tracker to see which POs have invoiced to remove Pending PRs from your forecast.Columns A - AI

Active Open PO lists all open POs (PRs that have not invoiced). This is the sheet where the PO forecast and accruals are calculated from. (1) Compare to the Prior Month PO tab to see which POs were accrued, (2) tag each PO, (3) calculate the remaining PO forecast based on what has been accrued.Columns A - AM

Prior Month PO the prior month’s accruals are pasted here so that the Active Open PO tab’s current open POs can reference what has been accrued before, so that the current accruals can be calculated accordinglyAny NEW Open POs that show up should be added to this tab and tagged, so that the references are shown in the Active Open PO tab.

PRList2 input all PRs in the tracker for accurate forecasting. Formulas automatically update GL Accounts, Departments, etc. Used to track WBIDs and add “Pending PRs” to the forecast if the PO hasn’t been invoiced. Will also show up under the Active Open PO tab as a reference.


SSOT Forecast Template Tabs

• Update the Dept-Acct Lookup tab with all the necessary department/management/cost pool mappings for quick filtering

DEPT NAME & DESCRIPTION DEPT #6-DIGIT

DEPT DEPARTMENT NAME MANAGER 2BUSINESSCONTACT

STANDARDPREFIX

M124073884 GIS-IMPL-FLEET-DREP 124073884 073884 GIS-IMPL-FLEET-DREP M52997 Howard, Mr. Darron J Brandon Black FLEETM573072279 GIS-IMPL-FLEET-DUB-IRL 573072279 072279 GIS-IMPL-FLEET-DUB-IRL M52997 Howard, Mr. Darron J Brandon Black FLEETM207073939 GIS-IMPL-FLEET-WBX-IND 207073939 073939 GIS-IMPL-FLEET-WBX-IND M52997 Howard, Mr. Darron J Brandon Black FLEETM538073873 GIS-IMPL-FLEET-BOSNIA 538073873 073873 GIS-IMPL-FLEET-BOSNIA M52997 Howard, Mr. Darron J Brandon Black FLEETM140072875 GIS-IMPL-FLEET-INDONESIA 140072875 072875 GIS-IMPL-FLEET-INDONESIA M52997 Howard, Mr. Darron J Brandon Black FLEETM599073867 GIS-IMPL-FLEET-LITH 599073867 073867 GIS-IMPL-FLEET-LITH M52997 Howard, Mr. Darron J Brandon Black FLEETM544072255 GIS-IMPL-FLEET-UAE 544072255 072255 GIS-IMPL-FLEET-UAE M52997 Howard, Mr. Darron J Brandon Black FLEETM511073851 GIS-IMPL-FLEET-LUX 511073851 073851 GIS-IMPL-FLEET-LUX M52997 Howard, Mr. Darron J Brandon Black FLEETM112072243 GIS-IMPL-FLEET-CSTRCA 112072243 072243 GIS-IMPL-FLEET-CSTRCA M52997 Howard, Mr. Darron J Brandon Black FLEET

GL Acct as text Detail Corp Exp Cat Summary Corp Exp Cat Detail Corp Acct Description Cost Pools (9 Categories) FETCH VIEW CTP Cost Pools Fin View Cost Pools (14 Categories)

60000 Salary Headcount Related Salary Headcount HC Related HC Related Compensation & Benefits60030 Temporary Labor Contracted Services Casual Labour Outside Services Outside Services Outside Svcs Temporary Labor60400 Temporary Labor Contracted Services Temporaries Outside Services Outside Services Outside Svcs Temporary Labor62140 Project Based Services Contracted Services Design & Development Outside Services Outside Services Outside Svcs Project Based Services62330 Outsourced Services Contracted Services Other Outsourced Services Outside Services Outside Services Outside Svcs Outsourced Services62340 Outsourced Services Contracted Services Support & Maintenance Services Outside Services Outside Services Outside Svcs Outsourced Services63001 Air Travel Discretionary Air Travel Company Paid Headcount Travel & Entertainment Other Travel & Entertainment63010 Other T&E Discretionary Ground Travel Headcount Travel & Entertainment Other Travel & Entertainment63190 Training Discretionary Subscriptions/Donations Headcount Training Other Education & Training63230 Recruiting/Relocation Discretionary Staff Recruitment Headcount Recruiting/Relocation Other Recruiting/Relocation64001 Equipment Discretionary Equipment Exp Gold Board Equipment Equipment Other Equipment65200 Software Discretionary Software Software Software Other Software67400 Miscellaneous Depreciation & Other/Allocated Tax & License Equipment Miscellaneous Other Equipment68524 Non-controllable Allocations Depreciation & Other/Allocated NMS allocation for Internals WPR Allocations Non-Controllable Allocations Other Non-Controllable Allocations60827 Headcount XC Debit Depreciation & Other/Allocated IT Charge OUT X-Charge Debits X-Charge Debits Other 60827-Headcount XC Debit60828 Headcount XC Credit Depreciation & Other/Allocated IT Charge IN X-Charge Credits X-Charge Credits Other 60828-Headcount XC Credit61903 Contracted Services XC Debit Depreciation & Other/Allocated IT Charge OUT X-Charge Debits X-Charge Debits Other 61903-Contracted Services XC Debit61904 Contracted Services XC Credit Depreciation & Other/Allocated IT Charge IN X-Charge Credits X-Charge Credits Other 61904-Contracted Services XC Credit65303 Discretionary XC Debit Depreciation & Other/Allocated IT Charge OUT X-Charge Debits X-Charge Debits Other 65303-Discretionary XC Debit65304 Discretionary XC Credit Depreciation & Other/Allocated IT Charge IN X-Charge Credits X-Charge Credits Other 65304-Discretionary XC Credit68020 Depreciation & Other Allocated XC Debit Depreciation & Other/Allocated IT Charge OUT X-Charge Debits X-Charge Debits Other 68020-Depreciation/Other XC Debit68030 Depreciation & Other Allocated XC Credit Depreciation & Other/Allocated IT Charge IN X-Charge Credits X-Charge Credits Other 68030-Depreciation/Other XC Credit

GL Accounts map to Cost Pool categories

The FETCH view consolidates similar GL Accounts into a “blanket” cost pool

for higher-level filteringEx. Outside Services: 62140, 62330


Steps• Run FETCH report

• Run GL Details, AP Details, and Open PO Details

• Input GL Details into GL Data tab• Input AP Details into AP tab• Input Open PO Details into Active Open PO tab

• Prior Month PO tab input prior month accruals, so that you can see what has been accrued and what is remaining in the quarter to accrue in the Active Open PO tab

• New POs that that show up in the Active Open PO tab will see a commentary of “N/A”; this means they have been added since the prior month accrual

• Add to the Prior Month PO tab and add a comment to “tag” the PO for tracking

• In the Active Open PO tab, the POs will vlookup against the prior month POs and calculate what is remaining to accrue, based on commentary


Accrual Forecasting

SSOT Open PO Report, Active Open PO & Prior Month PO tabs


Prior Month PO

• Input the prior month’s accruals into the Prior Month PO tab.• MONTHLY ACCRUAL INPUT input the prior month’s accruals;

• Current POs from the Active Open PO tab matching the POs from this tab this will be reflected for accrual forecasting

• Any new POs that have been added will vlookup “N/A” in the Active Open PO tab, indicating that they have to be added to the Prior Month PO tab to “tag” and “track”

• CURRENT PO + LINE PO Line reference for vlookups and tracking• COMMENTS input commentary for tracking purposes to “tag” each PO


Active Open PO - Overview

• PRIOR MONTH ACCRUALS shows the prior month’s accruals• OPEN PO FORECAST calculates what is remaining to forecast for each PO• TOTAL QTR ACCRUAL shows the Quarterly Forecast for each PO, assuming it will be fully accrued• COMMENTS each PO is “tagged” with commentary to indicate how to accrue/not accrue the PO• #N/A indicate that these are new POs added since the prior month’s accruals


Active Open PO Tagged CommentaryCurrent-Q1FY16 Current Quarter PO• Usually forecast at 100% unless services are not

fully rendered• Accrue at 33% (M1), 66% (M2), and 100% (M3)

Current-Q1FY16 – Accrue Up To $$$… Current Quarter PO with known reduction• Accrue monthly, but by quarter’s end, it should

not exceed the amount provided

Do Not Accrue – Equipment Small Equipment is not accrued• Close the POs by month’s end

Do Not Accrue – Office OpEx office expenses are not accrued• Close the POs by month’s end

MULTI-QTR – Equipment Leases, Etc. these are POs that have milestones that extend through multiple quarters• Accrue accordingly by month

Prior-Q1FY15, Q4FY15, etc. prior quarter POs• Accrue at 100%

#N/A this means that new POs have been added since the prior month’s accruals• These new POs need to be added to the Prior

Month PO tab as part of a running tracker, so that ALL active POs are “tagged”

Tag each active PO in order to easily forecast how to accrue PO with ease. Identify and tag each PO with the following:


Accruals Adding New POs for Tagging(1) Identify the #N/As in the Active PO tab filter under Comments

(2) Add the #N/A POs to the Prior Month PO tab copy/paste special columns A-BQ

Columns A-BQ Copy/Paste Special the new #N/A POs

from the Active PO tab

Columns AN-AQ copy formulas down

Columns BI-BJ Delete the #N/As

Column BK Tag each PO accordingly


Accruals Adding New POs for Tagging(3) Tag each PO with the appropriate commentary under Comments

Columns A-BQ Copy/Paste Special the new #N/A POs

from the Active PO tab

Columns AN-AQ copy formulas down

Columns BI-BJ Delete the #N/As

Column BK Tag each PO accordingly


Accruals Adding New POs for Tagging(4) By tagging the #N/A POs in the Prior Month PO tab, they now show up with commentary in the Active Open PO tab

Tagged Commentary from the Prior Month PO tab

Because this was an #N/A PO, this means the PO was added after the

prior month accruals; as such, there are no accrual amounts under the

PRIOR MONTH ACCRUALS column.

TOTAL QTR ACCRUAL currently forecasted at 100% because these are Current Quarter POs

OPEN PO FORECAST = “USD Remaining Amount” – PRIOR MONTH ACCRUAL

(1) For forecasting purposes, at the high level, assume Current Quarter POs are accrued at 100%, unless there are known reductions in services, PTO days taken, or vendor furloughs

• Check with your business partners to determine the true liabilities(2) Each PO should be forecasted and accrued according to the Tagged Commentary(3) Once you determine the accrual amount, they need to be inputted into the FinABC tool for compliance purposes


Accrual Input by JVPO Number

Monthly Accrual Input by JV

The Accruals will be uploaded to Oracle via

a JV Template


Accrual Input via FinABCPO Number

FinABC Accrual Input Amount by %

FinABC Accrual Input

Amount by Cumulative $Monthly Accrual

Input by JVThe Accruals will be

uploaded to Oracle via a JV Template


Accruals in Forecasting

• If prior month accruals (MAR’15 ACCRUALS) have been reversed, TOTAL QTR ACCRUAL will be used to calculate the forecast. The reversal will create a negative entry to offset the prior month accrual; hence, the full-quarter amount should be accrued.

• If prior month accruals have not been reversed, the OPEN PO FORECAST will be used to calculate the forecast, only taking the remaining PO amount into account

The Active Open PO tab plays an integral part in the forecasting, as it automatically helps calculate how the accruals will impact the forecast.


FinABC• Before Accrual JVs can be uploaded to Oracle, they have to be inputted into FinABC for compliance policies

• (1) An accrual should be recorded at the point in time when a liability has been incurred or when (2) goods or services have been received

• Accruals should be uploaded by the Requesters or POC


FinABC – Input Accrual Report

4. In the Input Accrual tab in, download the Input Accrual Report• Choose the Excel option under the

Input PO Type

1. Go to the FinABC homepage http://wwwin-tools.cisco.com/finabc/home.do

2. Click on Accrual

3. Click on Input Accrual

5. Click on Export to Excel

http://wwwin-tools.cisco.com/finabc/home.do


Adding Accruals from SSOT to FinABCAccruals are forecasted from the Open PO Report from FETCH in the SSOT and are used for:(1) Quarterly forecasting (Actuals to Commit)(2) Monthly accrual input into the FinABC tool

• Add the FinABC Input Accrual Report data to the SSOT under the InputAccrual-FinABC tab.• Copy/Paste Special Columns A-I, J-K, M-AZ• Columns I, L, and BA are formulas used to merge the monthly accrual data from the SSOT Active Open PO tab• Once the Cumulative Work Complete in % (Column I) and Comments (Column L) are inputted, the accrual

amounts are uploaded back into FinABC for compliance policies.

% Cumulative Work Complete input for

FinABC

Tagged Commentary for FinABC


Upload Input Accrual Report to FinABC

• Click Upload & Save• Do not click Upload & Submit

• If Submitted, the accruals inputs are final and cannot be changed

• Any AP Payments between the time of submission and JV Upload will not be captured.

Copy/Paste Special the accruals data from the InputAccrual-FinABC tab into a completely new Input Accrual Report so that the data to be uploaded to the FinABC tool is “reset”• Make sure there are no special characters in the file #, $, “”, - ->, @, +, etc.• Save the file with the extension *.xls • Review all accruals with your business partners or POC before submission


1. Input Accrual

Click Save – do not click on Submit

Once the accruals are uploaded, FA can Approve All

Input Accrual & Review AccrualClick Save whether

the accruals are uploaded manually

or via Excel

2. Review Accrual

Click Save whether the accruals are

uploaded manually or via Excel


How Accruals are Calculated in FinABC

Final Accrual amount after it is entered under the

Cumulative Work column(s)

FinABC Accrual Examples

PO # PO Value Cumulative % of Work

Complete

Cumulative $$$ Work Done

PO Paid Final Accrual

TUS202121348CW $50,000 86% $39,965 $3,035

($50,000 PO Value x 86% Cumulative Work Complete) = $43,000 - $39,965 PO Paid = $3,035 Final Accrual

TUS202142611CW $45,161 $32,500 $0.00 $32,500

$45,161 PO Value - $32,500 Cumulative $$$ Work Done - $0.00 PO Paid = $32,500 Final Accrual

Accruals can only be entered into FinABC by • (1) % Cumulative Work• (2) Cumulative Work Done


Export option

The Accrual Report shows all POs o Pendingo Submittedo Approvedo Savedo Rejected

Actions• Reports for analysis• Validation

NOTES• If the accruals are Saved, the accrual amounts will dynamically change from WD-5 to WD-

1 as AP Payments are made• If the accruals are Submitted, the accrual amounts remain static and will not change• Review with your POC before final submissions and approvals into FinABC

Suggested Plan of Action• Give Input Accrual Report to business requestors/POCs for review by WD-6• Upload & Save into FinABC by WD-5

• ROW (Rest Of World) Financial Analyst Approve & Submits on WD-5 in FinABC• COE Team reviews FinABC input and creates JVs in Oracle

• US/CDA Financial Analyst Approves & Submits on WD-2 and uploads the accruals via JV to Oracle

Accrual Report


Accrual Report - OutputThe WD Accruals will adjust as AP

Payments are paid out I they are not Submitted but only Saved

Monthly Accrual entry into FinABC by

Cumulative Work Complete in %

Monthly Accrual entry into FinABC by

Cumulative Work Complete (Func)


Accrual JV Upload• Once the Accruals are submitted to FinABC, the FA reviews and approves them.• The Accruals are then uploaded to Oracle via JV Templates


FinABCBackup

Stanley Chan


Open PO’s from BO

Provide Accrual feedbacko Webo Excel upload for bulk

changes

Actions

• Save - Saving PO /Line• Submit – Submit PO for

review• Submit all – Submit PO’s

across all pages• Close – initiate request for

close of a PO• Attachment – Attach

support documents• Comments – comments for

future reference

Who can use? - Assigned persons, Buyers, Requestors, Department contacts & FA

Input Accrual Tab


Accrual input fields

Switch between All PO’s & Rejected PO’s

Filters to narrow down the search

Input type for web/excel upload

Rejected PO’s are highlighted in Red

Actions to perform

Select PO Lines

Input Accrual - Features


Submitted PO’s only

Provide Accrual feedbacko Web

Actions

• Revise/update feedback• Approve a PO• Reject a PO

Who can use? - FA

Review Accrual Tab


Filters to narrow down the search

Accrual input fields

Actions to perform

Select multiple/ Select all

Review Accrual - Features


All PO’s o Pendingo Submittedo Approvedo Savedo Rejected

Reportso Web - Onscreeno Excel downloadso Historic reportso Current month’s

Actions

• Reports for analysis• Validation

Who can use? - Assigned persons, Buyers, Requestors, Department contacts & FA

Accrual Report Tab


Web View and Export view is based on filter selections and consistent

Export option

Accrual Report - Features

Historic reports can be seen through filters


ForecastingBackup

Stanley Chan


PR LIST

• PR List helps track PRs that you have approved• Track Multi-Qtr PRs and split between what needs to be accrued in the current quarter; this will help accrue Multi-Qtr PRs more easily • POs go from “Not Available” to PO# as they show up in the Open PO report•

Date post:	25-Jan-2017
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Stan's SSOT Forecast Model - Accruals Focus

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