for Budget Planning & Rolling Forecast FESA P lanning Website: Last update: 23-Dec-2013

Scope of Solutions & Services Mix Level of Automation & Investment Level of Automation & Investment FESA Q uery FESA P lanning FESA F inancial FESA C onsol FESA P rofessional A ccounting FESA A nalyst Budget Planning & Rolling Forecast Management Reporting Regional Financial Management Group Consolidation & Budgeting Multinational Financial Management Analytical Performance Management FESA Consolidation Series

F lexSystem E nterprise S oftware A rchitecture

Web & Windows Login Client

Agenda

About Planning Sales department updates sales forecast every day IT department prepares annual IT budget for 201X Brand manager monitors variance of actual cf budget Your ERP systems responsible for historical data Finance Manager responsible for cash flow projection Management demand for managing future proactively HR manager analyze HR plans provided by line managers

About Challenges of Planning  Substantial time are involving data manipulation rather the core work of planning and analysis the core work of planning and analysis  Nightmare of using linked formulas amongst different spreadsheet files  Difficult to ensure the correct version of forecast  Very time consuming to consolidate different budget scenarios  High frequency of errors and difficult to identify the source of errors  Internal auditor identifies current weakness of budgetary control system  Extended time for new staff to learn and practice the tedious processes of data manipulation

Solving Issues Arising from Aggregation & Versioning FESA P lanning

Aggregation Computing Issues  Simplex form of aggregation = = 2  Most common aggregation functions Sum(), Count (), Max(), Min() Sum(), Count (), Max(), Min()  Assumptions (Based on standardized data source) Measurement and recognition rules Measurement and recognition rules Chart of accounts Chart of accounts Reporting currencies Reporting currencies Data file formats Data file formats Presentations of transactions or trial balances 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) 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)

Aggregation Computing Issues  Key problems encountered by headquarters Issues of unexpected speed and accuracy when Issues of unexpected speed and accuracy when Many data files Many data files Many rows and many columns for each data file Many rows and many columns for each data file Following are examples of column name: Following are examples of column name: Many amendments of data files Many amendments of data files Identifying missing and duplication of data files Identifying missing and duplication of data files Frequent reporting, from monthly to weekly to daily to… Frequent reporting, from monthly to weekly to daily to… Issues of security control Issues of security control Send data through system to wrong recipients Send data through system to wrong recipients Ledger code Voucher date A/C period Account code Business unit DepartmentProjectBranch Currency code Org amount Exchange rate Eqv amount Quantity Unit code Unit price Particulars

Aggregation Computing Issues  Aggregation scenarios Scenario 1: Aggregation for strategic management Scenario 1: Aggregation for strategic management Five-year budget planning with multi-scenario analysis Five-year budget planning with multi-scenario analysis Acquisition and disposal decisions Acquisition and disposal decisions – Capital asset, legal entity, branch, product line Scenario 2: Aggregation for operational management Scenario 2: Aggregation for operational management YTD actual profit and loss by business unit by month YTD actual profit and loss by business unit by month Monthly forecast by business unit by department Monthly forecast by business unit by department Actual cf budget scenarios cf rolling forecast versions Actual cf budget scenarios cf rolling forecast versions Sale-thru analysis by different dimensions Sale-thru analysis by different dimensions Scenario 3: Aggregation for statutory compliance Scenario 3: Aggregation for statutory compliance YTD actual consolidated trial balance by company by the following GAAPs: YTD actual consolidated trial balance by company by the following GAAPs: – PRC GAAP – US GAAP – HK GAAP – Japan GAAP

Aggregation Computing Issues  An example of dynamic on-line aggregation

Aggregation Computing Issues  An example of dynamic on-line aggregation

Versioning Computing Issues  Definition Versioning means version control over data processing and/or reporting based on same sets of assumptions Versioning means version control over data processing and/or reporting based on same sets of assumptions It shall be differentiated from aggregation scenarios It shall be differentiated from aggregation scenarios  Two types of version control Version control for audit trial purpose Version control for audit trial purpose Version control for reporting purpose Version control for reporting purpose  Version control for audit trial purpose Who, when, how about the submission of data files Who, when, how about the submission of data files Who, when, why about the subsequent amendments Who, when, why about the subsequent amendments Who, when, what about the authorization of data postings Who, when, what about the authorization of data postings About the status of process: pending, completed, fail About the status of process: pending, completed, fail  Version control for reporting purpose Q1, Q2, Q3, Q4 version of rolling forecast Q1, Q2, Q3, Q4 version of rolling forecast

Versioning Computing Issues  Key problems encountered by headquarters Manually assign version number of file and folder name Manually assign version number of file and folder name Problem to support multi-user enquiry Problem to support multi-user enquiry Not easy to maintain completeness Not easy to maintain completeness Issue of security control Issue of security control Implement standalone document management system Implement standalone document management system Can keep every version of data file upload itself rather than post and store relevant raw data within database 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 It cannot support to automate aggregation, so it cannot support the retrieval of particular version of consolidated rolling forecast

Versioning Computing Issues  An example of versioning for audit trial purpose

Versioning Computing Issues  An example of versioning for reporting purpose

Time Dimensions -Daily / Weekly -Monthly / Quarterly -Yearly -Month-To-Date -Year-To-Date Business Dimensions -Income / Expense -Assets / Liability -Off/Post-Balance Sheet -BU / Department -Project / Product Location Dimensions -Branch -District -City -Country Other Dimensions -Version / Scenario -Internal / External -Currency / Amount -Quantity / Statistics What is FESA Planning ? Sales & Marketing Production Production Logistics Logistics HR & Admin

Budget Budget Projection Projection Actual Actual Forecast Forecast Time Dimensions -Daily / Weekly -Monthly / Quarterly -Yearly -Month-To-Date -Year-To-Date Business Dimensions -Income / Expense -Assets / Liability -Off/Post-Balance Sheet -BU / Department -Project / Product Location Dimensions -Branch -District -City -Country Other Dimensions -Version / Scenario -Internal / External -Currency / Amount -Quantity / Statistics What is FESA Planning ?

Budget Budget Projection Projection Actual Actual Forecast Forecast Time Dimensions -Daily / Weekly -Monthly / Quarterly -Yearly -Month-To-Date -Year-To-Date Business Dimensions -Income / Expense -Assets / Liability -Off/Post-Balance Sheet -BU / Department -Project / Product Location Dimensions -Branch -District -City -Country Other Dimensions -Version / Scenario -Internal / External -Currency / Amount -Quantity / Statistics What is FESA Planning ?

Budget Production Projection Actual Forecast Actual Actual Budget Budget Projection Projection Forecast Forecast

C&B Code What is FESA Planning ? Basic SalaryBasic Salary OTOT CommissionCommission Double PayDouble Pay Performance BonusPerformance Bonus Share OptionsShare Options Housing AllowanceHousing Allowance Medical InsuranceMedical Insurance Life InsuranceLife Insurance Holiday PayHoliday Pay MPFMPF Sick LeaveSick Leave Exam LeaveExam Leave And MoreAnd More

Budget Actual What is FESA Planning ? Forecast Projection Actual Actual Budget Budget Projection Projection Forecast Forecast

Budget Actual Forecast Projection Budget Budget Actual Actual Forecast Forecast Projection Projection

Budget Actual Forecast Projection Actual Actual Budget Budget Projection Projection Forecast Forecast

Budget Budget Projection Projection Actual Actual Forecast Forecast Time Dimensions -Daily / Weekly -Monthly / Quarterly -Yearly -Month-To-Date -Year-To-Date Business Dimensions -Income / Expense -Assets / Liability -Off/Post-Balance Sheet -BU / Department -Project / Product Location Dimensions -Branch -District -City -Country Other Dimensions -Version / Scenario -Internal / External -Currency / Amount -Quantity / Statistics What is FESA Planning ?

Save Time Shortest time for implementation Save Efforts Avoid disruption of day-to-day operations Save Money Commit minimum capital investment Mitigate Risk Walk away from associated risks of ultimate complexity Start and Growth FESA Planning with an Entry Point Package

Agenda

Records to Reports (R2R) Framework FESA DBMS EXCEL FILES

Support Highly Flexible Formatting of Spreadsheet Data  “Pivot Table Like” or “Column” Form: it can support Incremental Based Budgeting it can support Incremental Based Budgeting  “Transaction Like” or “Row” Form: it can support Zero Based Budgeting it can support Zero Based Budgeting We classify formatting of spreadsheet data into two main classes:

Support Data Rewritable Methodology User can assign Segmental Rewrite Code to their date entry form so as to rewrite posted data associated with specific dimensions such as company, department and version: For example:  HR01 represents data entry form responsible by HR department to maintain version 01 of data set  SALE01 represents data entry form responsible by Sales department to maintain version 01 of data set

An Example of Report Package

Planning Process Management

Support You to Configure Authorization & User Access Right

Pending Pending CompletedCompleted RestoredRestored 1. Data File Upload 1. Data File Upload User A User A 2. Posting 2. Posting VoidVoid 2/3 User D User D Workflow Scenario 1

Pending Pending ValidatedValidated Validated Validated CompletedCompleted RestoredRestored 1. Data File Upload 1. Data File Upload User A User A User B User B User C User C 2. Validation Only 2. Validation Only 3. Save as Batch 3. Save as Batch 4. Posting 4. Posting VoidVoid VoidVoid VoidVoid 2/3 User D User D Workflow Scenario 2

Provide Comprehensive Audit Trial Provide comprehensive enquiry function for administrator or auditor to monitor and audit data processing activities

Agenda

Planning Process Management

Conclusion  Fast and flexible for the implementation of budget and rolling forecast scenarios.  Very user friendly to allow financial users to configure and monitor variances with differing combinations of budgets, current / prior year actuals and multiple versions of rolling forecasts.  Outstanding performance of R2R processing so as to enable you to minimize your lead times for budget planning, rolling forecasts, monitoring, and decision making.  Improved internal controls throughout the whole process of budget planning and rolling forecasts so that decision making is based on reliable information.

Agenda

Scope of Solutions & Services Mix Level of Automation & Investment Level of Automation & Investment FESA Q uery FESA P lanning FESA F inancial FESA C onsol FESA P rofessional A ccounting FESA A nalyst Budget Planning & Rolling Forecast Management Reporting Regional Financial Management Group Consolidation & Budgeting Multinational Financial Management Analytical Performance Management FESA Consolidation Series