Presentation Transcript

1. FESA Consolidation Solving Issues Arising from AVESTA Computing
2. About FlexSystem FlexSystem is a recognized leader in enterprise management software industry in the Greater China region. Over the past 26 years, FlexSystem has been delivering high quality application software and services to maximize the client's operational efficiency in the accounting, order processing, payroll and human resources, manufacturing, workflow and business management. In recent years, FlexSystemhas been investing a dedicated R&D, consulting and support team to implement the advanced automation of Group Consolidation and Budgeting for sizable organizations. They have achieved significant success in software industrialization – no longer to rely on “Programming”, but unleash the power of software configuration to deliver customization of systems address to specific requirements of different user groups very efficiently. Besides our staff are enriching their practical experiences, they are also participating to conduct various researches from time to time. This documentation summarize our insights of computing issues deriving from the works of Group Consolidation and Budgeting. This can be your next agenda solving computing issues relevant for your organization.
3. Group Consolidation & Budgeting The works of Group Consolidation & Budgeting are usually involving manipulation of massive volume of heterogeneous dataderived from any combination of multi-company, multi-company-group, multi-headquarter, multi-department, multi-business-unit, multi-budget-owner, multi-location, multi-currency, multi-project, multi-period, multi-system and further complicated by the following scenarios: Objectives of reporting Commercial organization and/or non-profit organization Listed group and/or private group Operational management and/or strategic management Internal reporting and/or external reporting Natures of data source Past, present and/or plan/predict futures Transaction, voucher, trial balance and/or pivot table like report On-balance-sheet, off-balance-sheet and/or post-balance-sheet Financial and/or non-financial Numerical and/or non-numerical SQL and/or NoSQL (e.g. spreadsheet is an example of NoSQL) Assumptions of accounting practices Tax accounting, financial accounting and/or management accounting Accrued accounting, cash accounting and/or fund accounting IFRS, PRC GAAP, HK GAAP, Japan GAAP, US GAAP etc
4. A Review of Your Systems Are you feeling that n software is most relevant for your works of consolidation and budgeting despite it have been triggering AVESTA computing issues?
5. Group Consolidation & Budgeting Computing issues you are usually encountered despite your organization had heavily invested on computerization. This may due to the following reasons: Diffusion of unexpected users’ expectation across your organization Demanding from computerization to advanced automation Relying on exporting raw data from computerized systems to spreadsheets for further data manipulation is no longer be acceptable for several reasons Active group restructuring as resulting from acquisition and disposal Diminishing returns on investment in standardization of business practices and systems across the dynamic group structure Implemented systems are mainly function as input and storage devices It is far from minimizing human involvement of data manipulation across all phases of computing Senior staff spends most of their time on tedious data processing works Implemented systems cannot adapt change of external environments Reluctant to incur high cost to maintain continuing modification of existing systems when it is triggered diminishing returns on investment
6. The Existence of Multiway Data Writing Wikipedia Article: Multiway Data Analysis Multiway data analysis is attributed to any multiway model that can facilitate analyzing large heterogeneous data set.  The ultimate goal is to reduce the multiway data from widerway down to more focuswaythat can be digested by different user groups.
7. 3 Progressive Phases of Automation Phase 3 Phase 2 Phase 1
8. Six Aspects of Our Multiway Model Domain Specific Model Model Determination Basis Based on our experiences and researches, our multiway model establishment is determined on a principal of separate of concerns The primary objective is to support simplifying the process to reduce the multiway data (i.e. heterogeneous data) from widerway down to more focusway that can be digested by different user groups based on objectives of reporting andassumptions of accounting practices
9. Six Levels of Advanced Automation
10. Solving Your AVESTA Computing Issues
11. Aggregation Computing Issues Simplex form of aggregation 1 + 1 = 2 Most common aggregation functions Sum(), Count (), Max(), Min() Assumptions (Based on standardized data source) Measurement and recognition rules Chart of accounts Reporting currencies Data file formats Presentations of transactions or trial balances Example Each company of a consolidation group furnishes standardized transactions, vouchers or trial balances to their headquarters for aggregation in order to prepare different kinds of summary reports (i.e. aggregation scenarios)
12. Aggregation Computing Issues Key problems encountered by headquarters Issues of unexpected speed and accuracy when Many data files Many rows and many columns for each data file Following are examples of column name: Many amendments of data files Identifying missing and duplication of data files Frequent reporting, from monthly to weekly to daily to… Issues of security control Send data through email system to wrong recipients
13. Aggregation Computing Issues Aggregation scenarios Scenario 1: Aggregation for strategic management Five-year budget planning with multi-scenario analysis Acquisition and disposal decisions – Capital asset, legal entity, branch, product line Scenario 2: Aggregation for operational management YTD actual profit and loss by business unit by month Monthly forecast by business unit by department Actual cfbudget scenarios cf rolling forecast versions Sale-thru analysis by different dimensions Scenario 3: Aggregation for statutory compliance YTD actual consolidated trial balance by company by the following GAAPs: – PRC GAAP – US GAAP – HK GAAP – Japan GAAP
14. Aggregation Computing Issues An example of dynamic on-line aggregation summary
15. Aggregation Computing Issues An example of dynamic on-line aggregation breakdown
16. Aggregation Innovation FionBrick Introduction www.fesaconsol.com/fionbrick.pdf Demo Video www.fesaconsol.com/fionbrick.mp4
17. FionBrick
18. Dashboard Designer
19. Dashboard Viewer
20. FESAQuery Solving Computing Issues Arising from Multi-dimension Aggregation www.fesaconsol.com/fesaquery.pdf
21. Versioning Computing Issues Definition Versioning means version control over data processing and/or reporting based on same sets of assumptions It shall be differentiated from aggregation scenarios Two types of version control Version control for audit trial purpose Version control for reportingpurpose Version control for audit trial purpose Who, when, how about the submission of data files Who, when, why about the subsequent amendments Who, when, what about the authorization of data postings About the status of process: pending, completed, fail Version control for reporting purpose Q1, Q2, Q3, Q4 version of rolling forecast
22. Versioning Computing Issues Key problems encountered by headquarters Manually assign version number of file and folder name Problem to support multi-user enquiry Not easy to maintain completeness Issue of security control Implement standalone document management system Can keep every version of data file upload itself rather than post and store relevant raw data within database It cannot support to automate aggregation, so it cannot support the retrieval of particular version of consolidated rolling forecast
23. Versioning Computing Issues An example of versioning for audit trial purpose
24. Versioning Computing Issues An example of versioning for reporting purpose
25. FESAPlanning Efficient Multi-dimensional Aggregation Collaborate with Version Control for Audit Trial and Reporting Purposes www.fesaconsol.com/fesaplanning.pdf www.fesaconsol.com/fesaplanning.pptx
26. Elimination Computing Issues Duplication of data Assuming no duplication within each company/business unit Duplication exist upon aggregation for a set of data Across different legal entities Across different business segments Across different geographical segments Types of elimination adjustments Operating activities: Sales and purchases Financing activities: Borrowings, repayments and settlements Investing activities: Acquisition and disposal Elimination for unrealized profits / (losses) Consolidated inventory is one of the key problem area Elimination for different measures Quantity (for different unit code) Amount (for different reporting currencies)
27. Elimination Computing Issues Key problems encountered by headquarters Eliminating transactions manually Duplication of works for every report and reporting Is not easy to eliminate for all relevant dimensions Inconsistence amongst different reports trigger extra effort for reconciliation Implementing traditional consolidation systems It may demand for creating a huge volume of account codes on both regional and headquarters levels in order to support automation of elimination
28. Elimination Computing Issues An example of WYSIWYG elimination configuration
29. Standardization Computing Issues Key standardization issues Differing transaction and reporting currencies Differing account codes and other dimensional codes Differing units of measurements Differing accounting policies and practice Differing accounting systems Differing year end dates Differing accounting policies and practice Differing measurement and recognition rules Allocation, amortization, depreciation Differing disclosure and presentation rules IAS 24 Related-parties disclosures IFRS 7 Financial instruments disclosures IFRS 8 Operating segments disclosures Differing accounting systems Differing design of account code e.g. very long account code Differing database e.g. SQL and NoSQL Posted vouchers can or cannot be amended
30. Standardization Computing Issues Strategy of standardization is all depend your choices Re-do implementation of existing systems Acquire and implement new systems Instruct regional office to re-classify, re-measure and re-input data on a set of standardize entry forms that follow accounting policies and practice for the purpose of consolidation Implement automation of standardization for every data file submission by regional offices Involve initial setting up of mapping tables Involve subsequent updating of mapping tables Uncontrollable areas of standardization Differing convertibility of currencies Maturity of financial assets Differing sovereign credit ratings Fair value of financial assets Differing time zones and geographical locations Goods and cash in transits Differing legal and regulatory environments Cannot escape from local requirements
31. Tagging Computing Issues Tagging is everyday life you may use, for example Tagging of mp3 files with multiple classification Tagging of photos associated with your friends (Social network) Tagging of documents within document management system Tagging of each processing base on system-defined tags these system-defined tags including related information about who upload file with invoking processing on particular date/time and subsequent status of processing Tagging of master records base on user-defined characteristics of each master record tagging a large number of master records including product codes, account codes, staff code, customer based on pre-defined characteristics of individual item long account code can be embed with multi-dimension so user may want to decompose it to uncover useful information
32. Tagging Computing Issues Tagging of every changes in master records Change in legal & management group structure Change in % of shareholdings Change in allocation ratios and amortization periods Change in product list prices and discount rates Tagging of transactions base on user-defined characteristics any key word such as "loss", "worst“, “fail” and etc. as included in transactions can be tagged as pre-defined analysis code attributed to specific dimensions. CRM is heavily implemented on tagging of sales data such as income group, age group, nationality, gender etc. Computing issues No tagging may trigger computing issues of reporting despite you have obtained all relevant data for reporting Do tagging manually also trigger computing issues
33. FESAConsol Moving Ahead to Advanced Automation of Elimination, Standardization and Tagging for Massive Volume of Heterogeneous Data www.fesaconsol.com/consol.pdf www.fesaconsol.com/consol.pptx
34. Alert Computing Issues Alert Manually
35. Alert Computing Issues There are two different kinds of alerts Process management alert Analytical alert Process management alert Uploaded, Validated, Void, Fail, Completed, Restored Analytical alert similar to continuing monitoring Inventory turnover ratio for any product class above the predefined value Sales performance any salesman is below pre-defined level for over 3 measurement periods Total for consolidated fixed assets do not reconcile with its movements Is it possible or are you demand for achieving advanced automation of analytical alert?
36. FESA Analyst Achieving Ultimate Automation of Alert that Empower your Analytical Performance Management at Anywhere
37. www.fesaconsol.com
38. Finance Computing Framework Group Level Processing Group Level Processing Company Level Processing
39. The Multiway Model Crossovers with the Finance Computing Framework x Domain Specific Model Information System Model
40. Leveraging the Principle of Separation of Concerns to Solve AVESTA Computing Issues Control Transformation Alert Collection Tagging Elimination Versioning Reporting Storage Aggregation Standardization
41. “No Programming” can Deliver Customization of Systems to Most of User Groups Very Efficiently Control Transformation Configuration Configuration Configuration Configuration Configuration Alert Collection Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Tagging Elimination Storage Reporting Versioning Aggregation Configuration Configuration Configuration Configuration Configuration Standardization Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration
42. FESA Consolidation Series
43. FESA Query FESA Consolidation Series Analytical Performance Management FESA Analyst FESA Planning Level of Automation & Investment Multinational Financial Management Group Consolidation & Budgeting FESA Financial FESA Professional Accounting FESA Consol Regional Financial Management Budget Planning & Rolling Forecast Management Reporting Scope of Solutions & Services Mix
44. FESAFinancial Unifying Finance Operations for Each Regional Management www.fesaconsol.com/fesafinancial.pdf
45. FESA ProfessionalAccounting Managing Global Consolidation with Localization of Financial Management
46. FESA Professional Accounting Tax Accounting Financial Accounting Management Accounting By Legal Entity By Business Unit By Department By Debtor Sales Purchase Rent Payroll Expense Revenue Bank Liability Cost Inventory Disclosureand Presentationof data retrieved from ledger Measurement and Recognition for each class of transaction Indexing andStorageof standardized vouchers
47. Financial & Professional Accounting Following sub-systems provide solutions specialized in different areas of financial & professional accounting: FESA Account Payable FESA Account Receivable FESA Account Revaluation FESA Account Reconciliation FESA Account Allocation FESA Account Amortization FESA Cash Management FESA Inter-company, RPT & Elimination FESA Fixed Asset FESA Job Management FESA Rental Billing FESA Procurement Management FESA Inventory Management
48. Inventory Performance Management
49. Inventory Performance Management SaleAmount and Quantity CostAmount and Quantity PurchaseAmount and Quantity StockAmount and Quantity Sell Thru % = Qty Sold / (Qty On-Hand + Qty Sold) Gross Profit % = ( Sale Amount – Cost Amount ) / Sale Amount
50. Inventory Performance Management
51. FlexSystem Enterprise Software Architecture
52. Web & Windows Login Client
53. FESA (A 5-tiers software architecture) Connectivity Internet and cloud ready Thin-client technology (support low bandwidth) Web and Windows/Excel login client Scalability Multi-user Message center Scheduling and queuing Usability Multi-language Rich user interface Security Data encryption Server activity log Extensibility Application expression (AX) System integration (Internal and external)
54. AVESTA @ 6 Major Software Modules Transformation Storage Reporting Control FESA Configuration Configuration Configuration Configuration Configuration Configuration Alert Collection Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Tagging Elimination Versioning Aggregation Configuration Configuration Configuration Configuration Configuration Configuration Standardization Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration Configuration
55. AVESTA @ 6 Major Solutions FESA Planning FESA Query FESA Consol Process Management Process Management Process Management Process Management Process & Analytical N/A Process Management & Ana. Group Process Management & Ana. Group Multi-dimension Lookup Analysis Group Dynamic Lookup Dynamic Lookup Alert FESA Financial Multi-dimension Lookup Common Data Set Common Data Set Common Data Set Dynamic Lookup Dynamic Lookup Tagging Elimination Versioning FESA Analyst FESA Pro A/C Aggregation Query Formula Query Formula Query Formula Dual Models Dual Models Dual Models Standardization Audit Trial & Reporting Audit Trial & Reporting Audit Trial & Reporting Audit Trial & Reporting Audit Trial & Reporting Reporting Efficient Efficient Optimize Optimize Efficient Efficient
56. 6 Major Modules @ 6 Major Solutions FESA Control FESA Query FESA Planning FESA Consol Standard + Optional Standard + Optional Standard + Optional Advanced + Optional Advanced + Optional Basic + Optional Standard FESA Financial Collection Customize Basic Customize Standard Customize Triple Models Entry Screen & Upload Upload Excel Upload Excel Upload Excel Triple Models FESA Analyst FESA Pro A/C Allocation, Currency & Mapping Transformation N/A Rule-based Rule-based Amortization Rule-based Storage Dual Data Store Optimize Data Store Dual Data Store Dual Data Store Optimize Data Store Dual Data Store Reporting Standard + Optional Standard + Optional Advanced + Optional Standard + Optional Standard + Optional Standard + Optional
57. Summary and Conclusion The Existence of Multiway Data 3 Progressive Phases of Automation 6 Aspects of Our MultiwayModel 6 Levels of Advanced Automation Solving Your AVESTA Computing Issues AVESTA Crossovers with Finance Computing Framework 6 Different Solutions Classified by Red, Greenand Blue FESA Query & Analyst FESA Financial & Professional Accounting FESA Planning & Consolidation FlexSystemEnterpriseSoftwareArchitecture (FESA) FESA Financial & Professional Accounting 9 Optional Sub-systems for Financial and Management Accounting 4 Optional Sub-systems for Planning and Consolidation Analysis of AVESTA @ Modules @ Solutions AVESTA @ 6 Major Software Modules AVESTA @ 6 Major Consolidation Solutions 6 Major Modules @ 6 Major Solutions