Model for Holding Companies

Different versions of sales plans and budgets on the levels of brands, items, clients, regions and sales managers unveil revenue drivers for individual companies and on holding company level.
Expenses' planning by types and cost centers for individual companies with further consolidation on holding company level provides management team with better cost saving ideas.
Brand profitability scenarios, direct cost variances on items level, consolidation reporting including P&L, BS and cash flow reports and many other features enforce company competitive advantages.

Planning and budgeting by companies and brands. Brands profitability "plan – fact" analysis reporting. Overheads planning by Cost Centers and Types with further distribution by Items and Brands. Usage of standard cost in planning with further cost variances collection from ERP system and variances distribution by Items and Brands. Cost variances "plan-fact" analysis reporting. P&L, Cash flow and Balance Sheet consolidation reporting. All above and more features we would like to offer to our Customers within our model for holding companies consisting of diversity of businesses.

The model is a good start for holding companies which have requirements in:

  • Focusing on the consolidated financial results of the whole group and individual companies as part of the group.
  • Collecting and keeping planning and actual data on a company level with automatic companies data consolidation on the holding level with intercompany elimination capability.
  • Brand profitability planning scenarios including different scenarios of marketing and non-manufacturing operational overheads distribution by brans with further actual data comparison reporting.
  • collecting of the direct cost variances and their distribution by Items to get actual item cost and support brand profitability scenarios.

Prerequisites and features:

  • Two interconnected time scales. Daily scale allows actual sales data collection by days while monthly scale is used for actual expenses collection, monthly reporting and planning.
  • Existence of brands and their profitability analysis requirements.
  • Multicurrency
  • Usage of standard costing method and direct cost variances collection and analysis requirements.

The model consist of similar sets of data structures and functionality provided for each company and one financial consolidation module to financially consolidate companies P&L, CF and BS taking into account intercompany balances.

Each company data structure consists of the following modules:

  • Sales planning
  • Standard costing and variances distribution by Items
  • Marketing expenses and their distribution by Brands
  • Commercial expenses and their distribution by Brands
  • Financial reporting to produce company P&L, CF and BS

All modules except financial module are more or less autonomous and support different levels of abstraction. Each module has interface blocks to accumulate planning and actual incoming and outgoing data. The data could be entered, uploaded or derived by rules into incoming blocks and pulled out from outgoing data blocks. In this case financial module does not support such autonomy due to it just takes finance data from other modules into P&L, CF and BS structures with minimum data recalculation.

The Model supports consequent calculations of margins from item level up to company net profit level.
Due to different distribution algorithms financial result is calculated at each level. At item level cost variances are distributed by finished goods which allow actual item's margin to be calculated. Some marketing expenses could be assigned directly to the brand while some could be distributed based on company rules. Operating and Commercial expenses assignment to the certain group of brands comprising particular line of business within company comes up with profit from operation margins of business lines.

Sales Planning module

ETL and Configurator:

Configuration parameters entry forms. Data and hierarchies loading procedures. Loading sequence control and error logs.

Module may accumulate daily actual sales data by items, customers, sales channels, regions and sales manages. Sales statistics is used to generate different reports by slicing and dicing accumulating data and as a basis for producing of sales forecasts.
Using scenarios Generator planner could create new scenario from any of the existing scenarios and by changing different parameters like sales prices, discounts, quantities, combination of sales items and many others planner may come up with a number of sales strategies for Board of Directors review.
Marketing Expenses Planning module

The Module provides planner with the opportunity to plan marketing expenses with the desired level of details. While some marketing expenses could be planned just by types and departments other marketing expenses require to be planned by promotion campaigns or by media types. Some marketing expenses could be assigned directly to the brand as particular brand advertisements but some have to be distributed by brands. To meet these requirements marketing expenses distribution by brands rules are provided within the Module.

The Module supports different scenarios of marketing spends in order to be integrated with other scenarios featured modules seamlessly.
Scenarios Generator provides the functionality of scenarios multiplication. It helps planner to create and review different marketing strategies in achieving company objectives.
Actual marketing expenses could be entered or loaded into actual data block by the same dimensions as planning data. Module analytical hierarchies like expense types or departments could be synchronized with ERP system by means of provided special ETL procedures and formats.
The Module provides different "plan-fact" reporting facilities.

Operational Expenses Planning module

The Module provides planner with the opportunity to plan operational expenses with the desired level of details. While some expenses could be planned just by types and departments other operational expenses require to be planned by staff like salaries and wages or by fixed assets like amortization.

Some manufacturing expenses could be assigned directly to the business line as, for example, electricity or other energy spent on production process of particular business line products. Some especially non-manufacturing expenses like administrative expenses have to be distributed by business lines. To meet these requirements expenses distribution rules are provided within the Module.

The Module provides facilities for expenses grouping by manufacturing and non-manufacturing, by fixed and variable.
The Module supports different scenarios in order to be integrated with other scenarios featured modules seamlessly.
Scenarios Generator provides the functionality of scenarios multiplication. It helps planner to create and review different spending strategies in achieving company objectives. Actual expenses could be entered or loaded into actual data block by the same dimensions as planning data. Module analytical hierarchies like expense types or departments could be synchronized with ERP system by means of provided special ETL procedures and formats.
The Module provides different "plan-fact" reporting facilities.