Website: http://www.fesa-s.com Email: [email protected] Last update: 28-Jan-2014
Solving AVESTA Computing Issues
FESA Consolidation Series
Collection
Storage
Reporting Standardization
Tagging
Financial Management
Financial Management
Analytical Performance Management
Group Consolidation
Budgeting & Rolling Forecast
Your Reporting Issues
Your Recording Issues Financial Management
Transformation
Our Reporting Framework
Our Recording Framework
Our Reporting Solutions
FESA Query FESA Analyst
FESA Planning FESA Consol
Our Recording Solutions
AVESTA Finance
Computing Solutions FESA
AVESTA Aim At Achieving Advanced Accounting Automation At Anywhere
Efficient multi-dimensional aggregation and elimination processes integrated with versioning for audit trial and reporting purposes
Moving ahead with advanced automation through standardization and tagging for massive volume of heterogeneous data
Achieving ultimate automation with alerts that empower your “analytical performance management at anywhere”
Phase 2
Phase 1
Phase 3
3 Progressive Phases of Implementation
Consolidation Aggregation
Basic Consolidation Definition
Elimination
Many Records (Rows) • Many Business Activities • Many Spreadsheets & Formats • Many Versions & Amendments • Many Dimensions
Many Dimensions (Columns) • Many Scenarios / Assumptions • Many Companies • Many Business Units • Many Locations / Branches • Many Periods
Basic Consolidation Computing Issues
Aggregation
On-line Aggregation Results
Aggregation
On-line Aggregation Results
Aggregation
On-line Aggregation Results
Aggregation
How to configure query report?
On-line Aggregation Results
Aggregation
On-line Aggregation Results
Aggregation
On-line Aggregation Results
Aggregation
On-line Aggregation Results
Aggregation
Liability Life Cycle Management
Budgeted
Liabilities • Approved Budget
Utilizing
Budgeted
Liabilities
• Approved Purchase Requisitions
Committed
Liabilities • Signed Purchase Orders
Incurred
Liabilities • Received Goods or Rendered Services
Invoiced
Liabilities • Received Invoices
Confirmed
Liabilities • Confirmed Contracting Parties
Settled
Liabilities • Registered Evidences
1
2
3
4
5
6 7
Aggregation
Budgeted Liabilities
Utilizing Budgeted Liabilities
Committed Liabilities
Incurred Liabilities
Invoiced Liabilities
Confirmed Liabilities
Settled Liabilities
Analyzed by consolidation group, legal entity & business unit
Analyzed by date, expense and liability nature, department & project
Analyzed by contracting party & relationship
Analyzed by contracting currency
Analyzed by aging (incur & due date)
Analyzed by settlement type
Contr
acti
ng P
art
ies
7 Stages with Different Dimensions
On-line Aggregation Results
Aggregation
Basic Consolidation Computing Issues
• Matching of Debits & Credits of A/C Hist. • Netting of Related Accounts for Settlement • Hedging to Offset Potential Losses/Gains
Group Consolidation & Budgeting (Consolidated Financial Statements) • Reversal of Inter-Co Sales & Purchases • Reversal of Inter-Co Due To/Due From • Reversal of Investment in Subsidiaries • Reversal of Unrealized Profits / Losses
Financial Management (Procure to Pay, Order to Cash, Treasury)
Elimination Elimination Aggregation
Basic Consolidation Computing Issues
• Consolidated inventory is one of the key problem
areas
Elimination for different measures • Quantity (for different unit code)
• Amount (for different reporting currencies)
Elimination for unrealized profits / (losses)
Elimination Elimination Aggregation
Basic Consolidation Computing Issues
Key problems encountered by headquarters
• Duplication of works of elim for every report • Is not easy to eliminate for all relevant dimensions • Inconsistence amongst different reports trigger
extra effort for reconciliation
Elimination Elimination Aggregation
Dynamic Elimination Management
Elimination
Supports Query Formula
Basic Consolidation Computing Issues
Elimination Aggregation
Additional Consolidation Computing Issues
• Version control for audit trial purpose
• Version control for reporting purpose
Two types of computing issues
Elimination Aggregation
Versioning
Two types of version control • Version control for audit trial purpose
• Version control for reporting purpose
Key problems encountered by headquarters • Manually assign version number of file and folder name
Problem to support multi-user enquiry Issue of security control Not easy to maintain completeness
• 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
Additional Consolidation Computing Issues
Version Control for Audit Trial
Elimination Aggregation
Versioning
Version Control for Reporting
Elimination Aggregation
Versioning
Additional Consolidation Computing Issues
&
Demonstration
Improving Planning Process Management
Advanced
Reporting
Aggregation
Recording Issues
Versioning
Elimination
Phase 1 AVESTA
AVESTA Aim at Achieving Advanced Accounting Automation at Anywhere on Phase by Phase Basis
Budgeting & Rolling Forecast
Planning Process Management
Planning Process Management
Additional Consolidation Computing Issues Additional Consolidation Computing Issues
&
Recording Issues
Versioning
Elimination
Phase 1 AVESTA
AVESTA Aim at Achieving Advanced Accounting Automation at Anywhere on Phase by Phase Basis
Budgeting & Rolling Forecast
Reporting Issues
Aggregation
Advanced Consolidation Computing Issues
Versioning
Progressive Automation of Advanced Recording to Reporting
Rolling Forecast
Financial Management
&
Group Consolidation
Phase 2 AVESTA
Recording Issues
Versioning Standardization Tagging
Elimination
Phase 1 AVESTA
Financial Management & Group Consolidation
AVESTA Aim at Achieving Advanced Accounting Automation at Anywhere on Phase by Phase Basis
Budgeting & Rolling Forecast
Reporting Issues
Aggregation
HK US Taiwan Europe Macau PRC Russia Brazil India
Conglomerate Group
Logistics Insurance Property
Development Investment Management
Hotel Retail
HR Finance Admin Marketing Procure IT
Multi-location, Multi-dept & Multi-business
Manipulation of massive volumes of heterogeneous data which originates from the combination of different dimensions eg 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. Objectives of reporting
• Internal reporting and/or external reporting • Operational management and/or strategic management
Natures of data source • Past, present and/or futures • Transaction, voucher, trial balance and/or pivot table like reports • SQL and/or NoSQL (e.g. spreadsheet is an example of NoSQL)
Assumptions of accounting practices
• Tax, financial and/or management accounting • IFRS, PRC GAAP, HK GAAP, Japan GAAP, US GAAP etc
Advanced Consolidation Computing Issues
x
BI.BPM
ERP.POS.CRM
Are you feeling that x software is most relevant for your computing works despite it have been triggering AVESTA
computing issues?
Advanced Consolidation Computing Issues
Are you working on a mainly paperless environment relying heavily on manual
intervention or any other scenario?
Advanced Consolidation Computing Issues
Paper Based Paperless
Manual
Automation x
BI.BPM
ERP.POS.CRM
Dr Cr Dr Dr Cr Cr
500-Year Evolution of the Accounting Model
+ - Standardization
- Dr Cr Dr Dr Cr Cr
500-Year Evolution of the Accounting Model
+ Account Doc Num Currency Amount
Cash I012345 HKD 200
Sales I012345 HKD -200
Invoice Number
Currency Sales Value
Discount Currency Cash Receipt
I012345 HKD 200 0 HKD 200
This system fail to follow the accounting model
Standardization
Measurement scenarios transactional, functional, presentation currencies/amounts & varying
types of units and associated quantities Explosive number of taggable dimensions e.g. document date, document number, due date, company, project,
department, branch, contracting party, movement type Elimination of matched debit and credit entries for different kinds of asset, liability and equity accounts Generating micro accounting entries based on assumptions
based on a set of assumptions and/or transactions for group consolidation and budgeting purposes.
Account Analysis 1 … Analysis n Doc Num Currency Amount
Cash I012345 HKD 200
Sales I012345 HKD -200
Key standardization issues • Differing transaction and reporting currencies • Differing account codes and other dimensional codes • Differing units of measurements • Differing accounting policies and practices • 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
Advanced Consolidation Computing Issues
Standardization
Tagging of transactions base on user-defined characteristics • CRM is heavily implemented on tagging of sales data such as income group,
age group, nationality, gender etc. • any specific key words included in transactions can be tagged as pre-
defined analysis code attributed to specific dimensions.
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
Advanced Consolidation Computing Issues
Tagging
Match Data Source Return User-defined Value
Dynamic Lookup Management
Tagging
Return User-defined Value Match Data Source
Dynamic Lookup Management
Supports Query Formula & Supports Partial Word Matching
Standardization
Tagging
Return User-defined Value Match Data Source
Dynamic Lookup Management
Supports Multi-User with Access Control & Version Control
Advanced Consolidation Computing Issues
Versioning Tagging
Elimination
Progressive Automation of Advanced Recording to Reporting
Budget Planning
Rolling Forecast
&
Financial Management
&
Group Consolidation
Phase 2 AVESTA
Recording Issues
Versioning Standardization Tagging
Elimination
Phase 1 AVESTA
Financial Management & Group Consolidation
AVESTA Aim at Achieving Advanced Accounting Automation at Anywhere on Phase by Phase Basis
Budgeting & Rolling Forecast
Reporting Issues
Aggregation
Ultimate Consolidation Computing Issues
Analytical & Actionable Performance Management
& &
Phase 2 AVESTA
Recording Issues
Versioning Standardization Tagging
Elimination
Reporting Issues
Phase 1 AVESTA
Financial Management & Group Consolidation
AVESTA Aim at Achieving Advanced Accounting Automation at Anywhere on Phase by Phase Basis
Budgeting & Rolling Forecast
Phase 3 AVESTA
Alert
Analytical Performance Management
Aggregation
CEO
CFO
Finance
Head
Manager
Supervisor
Manager
Supervisor
HR
Head
Manager
Supervisor
Company
Secretary
Manager
Supervisor
CIO
IT
Head
Manager
Supervisor
COO
BU
Head
Manager
Supervisor
BU
Head
Manager
Supervisor
Measure and Monitor Trigger Points of Alert Manually
Analytical Performance Management
There are two different kinds of alerts • Process management alert • Analytical alert
Process management alert
• Uploaded, Validated, Void, Fail, Completed, Restored
Analytical Performance Management
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
Analytical Performance Management
Selection Criteria 1,2,3,…n
Membership (X-Templates)
By Gender Group
By Age Group
By Member Grade
By Nationality
Analytical Performance Management
FESA Application Server
Data Sources
Collection Transformation Storage Reporting
Outputs
Processing Rules
Reporting Recording to Reporting
Query Formulas
System Control
Collection
Transformation
Storage
Reporting
Recording
Rule Processor Query Processor
User Interface
System Control
Master Settings
Finance Computing Framework
Collection Transformation Storage Reporting
FESA Application Server
Collection
System Control
Versioning
Aggregation
Versioning
Elimination
Elimination
Elimination
Versioning
Standardization
System
Configurations
Aggregation Versioning
Elimination
Standardization
Tagging
Alert
Transformation Storage Reporting AVESTA
Requirements
Rule Processor Query Processor
The six modules work together can reduce the multiway data from widerway down to more focusway that can be digested by different user groups.
Multiway Example
One-way data • Line graph of monthly consolidated net income – IFRS
Two-way data • An executive dashboard including different time-series KPIs • Consolidated P&L (Actual cf Budget) by business units • Full set of standardized voucher list for a group of companies
Three-way data • Full set of consolidated financial statements • Full set of sales transaction list, purchase transaction list,
inventory list, payroll transaction, fixed assets list etc
Fourth-way data • SQL and NoSQL (e.g. Spreadsheets) managed by a headquarter
Fifth-way data • Different SQLs and NoSQLs (e.g. Spreadsheets) managed by regional offices
Transforming Multiway Data for Reporting
Processing Rules
Processing
Rules
Windows Single Sheet SQL
Supports Different Types of Data Sources
Internal
Data
Storage
External
Data
Storage
NoSQL Multi-sheet Excel
Supports Different Types of Data Collection Methods
Existing Data Store
User-defined Data Entry Forms
Existing Data File
Collecting Transaction Detail and/or Aggregated Information
Collecting Structured Data and/or Unstructured Data
Web
Mobile
Query Formulas
Alert
Tagging
Standardization
Elimination
Versioning
Aggregation
Recording Reporting
An Evaluation Form