The majority of companies involved in the development, production and realization of its own product represent a holding structure with clear division of operating activity types. As a rule, head office of the holding is the one responsible for planning, financial consolidation and activity analysis of other structural subdivisions: output of products; marketing, sale and distribution; R&D units; subsidiary enterprises.

Such holding structure improves efficiency of enterprise management in general and requires from the financial service to manage quickly and efficiently big volumes of data (both, at the planning stage and the one of actual data collecting) and additional processes of results and target coordination. In such situation Excel as a traditional means of budgeting process automation turns from a convenient tool into deterrent and as a result, the following problems appear:

  • Large data volumes lead to inconveniences and slow Excel operation.
  • Automatic consolidation of data from business units is impeded.
  • Plan/actual analysis is almost impossible.
  • Data reliability is decreasing due to a possibility of deliberate or accidental Excel formulas broke or data violation.
  • Simultaneous multi-user work is almost impossible.
  • Changes tracking and logging is impossible as well as separation of powers to data change and analysis.
  • Budgeting process doesn’t have automatic control devices.

Proposed solution “Planning and budgetary control” is based on a reputable SAP BW (Business Warehouse) product, amended with components of TeamIdea customer development.

Such a solution helps to computerize the majority of budgeting process operations starting from the primary input of subdivisions operating budgets to plan/actual analysis according to company’s management reporting standards.

The solution comprises the following components:

  • Means of tasks scheduling and control of budgeting process execution.
  • Interface of operating budgets planning data: product realization, general business expenses of subdivisions, direct marketing expenses on the product, investments.
  • Special management and calculation tools of planning data: amortization, payroll fund, including staff schedule, factory costs on the basis of implementation charts, including feedstock and works.
  • Tools for collecting actual data of primary accounting and its’ statistical key figures (balance list and balance statement, sales data, direct and indirect costs) including programs conversion such as code conversion, definition and supplement with necessary analytical features.
  • Tools of planned and actual performance transformation and consolidation according to company’s management accounting standards.
  • Tools of on-line analytical processing (OLAP).
  • Tools of daily sales report preparation.

Implementation of this solution and carrying out correspondent changes in financial departments functioning according to business processes and rules implemented in the business model realized in the course of the project offers:

  • Efficient tool of plan and prime accounting data operation and analysis according to holding’s principles and approaches towards calculation and evaluation of financial results (both a separate company and a holding itself).
  • Reduction of budget planning terms and terms of consolidated book-keeping up to two or three times;Possibility of simultaneous calculation of several budget versions.
  • Possibility of data introduction by employees who are responsible for certain subsidiaries budgets control.
  • Control of primary input errors and increase of budgeting data reliability and  consistency due to single reference data usage.
  • The unique storage of plan and actual data of all holdings’ subdivisions regardless of the prime accounting system in use. 

It should be mentioned that the distinctive features of the solution is the possibility of calculation and modeling of plan base cost of each item and account of influence of direct and indirect costs of production and non-production subdivisions on financial result.

The solution could be easily integrated with any logistic or finance system of the company. If your company is already using SAP ERP solution the two systems could be seamlessly integrated in terms of organizational and master data and direct usage of BW sale, merchandizing, accounting data could be applied as a source for operations on actual values analysis and transformation.  

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