CashFlow Statement 2.0

download CashFlow Statement 2.0

of 12

  • date post

    14-Apr-2017
  • Category

    Documents

  • view

    107
  • download

    0

Embed Size (px)

Transcript of CashFlow Statement 2.0

  • Logo du client

    17 06 2013

    Cashflow statement 2.0

  • Logo du client

    What are we saying when talking about cashflow ?

    The different kind of cash-flow: Two methods:

    Direct method: a treasury vision of inflow and outflows (a treasury explanation of the variation) Indirect method: an operational vision of the cash / debt variation

    Different explanations: Cash variation explanation Net debt variation

    Different aggregation: Operational cashflow, free cash-flow CAPEX, cashflow from investing activities Cashflow from financing activities

    The method that will be explained is mainly for indirect but is not limited to any explanation variation or aggregate

    2

  • Logo du client

    What are the main problem faced in the systems ?

    Difficulties to have dedicated cashflow by scenario / year One cashflow for all the scenario Not able to setup or make evolution on cashflow

    Bottleneck in the rules calculation (with long consolidation time) No link with treasury reporting

    3

    We noted on HFM Application 3 recurring problems:

    Lake of auditability and difficulties to understood an amount Not able to drill down No possibilities to understood easily an amount

    or

  • Logo du client

    What is the technical explanation ?

    The method that should not be applied: Hard coded rules for cashflow

    Not data driven: the crossing are always calculated, regardless of presence of data in the system

    Generating huge amount of zero Slowing down the system

    4

    Realized with that method in 70% of the

    applications

  • Logo du client

    What should be the perfect solution ?

    5

    Easy to maintained

    Easy to design

    Easy to analyze

    Good calculation performance

  • Logo du client

    What do we propose ?

    6

    Auditability / Analysis

    Very good performance (compare to what the market propose)

    Zoom capabilities to drill until an amount

    Dynamic webform to analyze easily the Cashflow

    No need to manage rules to understand and update cashflow: setup is done in

    the metadata

    Flexibility / Evolutionary

    Very good performance (compare to what the market propose)

    Possibilities to manage different cashflow (one by period, or one by scenario)

    Dynamic webform to analyze easily the Cashflow

    No need to manage rules to understand and update cashflow: all the setup is

    done directly a admin webform (as ownership)

  • Logo du client

    What are the result in term of performance ?

    The method prevail over the version

    7

  • Logo du client

    What is the first method ?

    First one realized to improve auditability

    With a single zoom you can determine the crossing which are feeding the amount The cashflow is easy to maintain: just have to add the crossing which are associated to

    the cashflow line Best way to create an audit trail for your cashflow

    8

    Design Usage

    Demo

  • Logo du client

    What is the second method ?

    Second one realized to improve maintainability

    You can setup your cash flow (and associated webform from HFM Interface) from a webform

    You can make evolution inside the cashflow by month (and maintain previous setup on previous month)

    You can have different cashflow between Budget / Forecast & Actual

    9

    Design Usage

    Demo

  • Logo du client

    How can we manage implementation risk ?

    Concerning operational riskNo risk on data production: Possibilities to maintain both cashflow (old and new one) to secure productionNo risk of regression: The cashflow design is based on the cashflow used

    Concerning planning riskThe methodology of implementation is industrialized: we apply always the same method to guaranty that the planning and result are in line with customer expectationNo risk of regression: The cashflow design is based on the cashflow used

    Concerning budget risk:The workload is fixed

    10

  • Logo du client

    What is the implementation matrix ?

    11

    Specification Development Validation Training and documentation

    Determine and design (in Excel) the Cash Flow

    Goal

    Prerequisite

    Workload

    Delivery

    Implement in HFM the cashflow Validate the cashflow with data Prepare documentation process

    Realized with that method in 70% of the applications Validation of specification Finalize development N/A

    From 2 days to 5 days 4 daysTo be defined

    (depends of the support, number of period and entities)

    3 days

    Cashflow specification and Excel simulation tools

    HFM Rules and metadata, and one webform by Cashflow lines Cashflow validation form

    5 process sheets that describe, maintenance (admin support)

    GoProd

  • Logo du client

    Next steps

    Link it with cash and treasury reporting See our webinar on Treasury reporting application

    1212

    $

    R$

    $A

    Register you to our next webinar on cash reporting in HFM

    Benoit LASCOLSSenior managerBenoit.lascols@Smarthys.com