Location Financial Planning
The AGR Location Financial Planning module is a part of the Planning suite. It is a standalone module which means that it is independent of other functionality within AGR and has its own inputs and outputs. It can therefore be implemented on its own or besides other AGR modules.
The financial module is a top-down strategic planning tool. It gives control and oversight over financial plans where plans can be compared to actual figures as time passes. Plans can also be revised when unexpected events happen that require financial plans to be adjusted. Plans are easily exportable to other systems and analytical tools.
The processes within the financial planning module are split into revenue planning and expense planning. Historic data is used to pre-populate both plans as a starting point which can then be amended by users.
Revenue Planning
Revenues Planning can be done for each division and down to product groups on weekly or monthly basis. A division for a retail business would typically be a store but for a wholesale business it might be a market or a customer. Historic data from last year is used to pre-populate the plan as a baseline which can be amended. In this example we are planning sales value for stores and product groups, as the drill down shows.
In addition to planning sales value, plans in value for sales at cost, discount and margin on sales can be made. Both discount and sales at cost plans can be amended which affects the margin on sales. Margin on sales target can also be set which will affects the sales at cost.
After a plan has been made it can be fixed, which means saving a version of the plan. When a plan is fixed the data is copied into new data series which can later be compared to actual performance. Revised plans can also be made and fixed when unexpected events happen that require financial plans to be adjusted.
Number of different plans is not limited. In AGR we have four standard fix plan data series; Q0, Q1, Q2 and Q3. An example on how a company might use these is that a plan might be fixed using Q0 at the beginning of the year, before any adjustments have been made to the plan. The financial plans might then be reviewed after each quarter and a revised plan made.
Expense Planning
Expenses Planning can be done for each division and account keys on weekly or monthly basis. A division can be a store, market or in this case company departments. Here expenses are grouped together by account keys such as salaries, IT cost, marketing etc. Historic data from last year is used to pre-populate the plan as a baseline.
Like in revenue planning, after a plan has been made it can be fixed which means saving a version of the plan. When a plan is fixed the data is copied into new data series which can later be compared to actual performance. Revised plans can also be made and fixed when unexpected events happen that require financial plans to be adjusted.