Sap budgeting, planning and forecasting survey jan 2014
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Sap budgeting, planning and forecasting survey jan 2014

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My thanks again to you for your participation in this follow on survey. ...

My thanks again to you for your participation in this follow on survey.
A summary of the results has been prepared and published here on slideshare for you to access
If you would like a PDF version then please just drop me an email and I will send it to you by reply mail.

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Sap budgeting, planning and forecasting survey jan 2014 Sap budgeting, planning and forecasting survey jan 2014 Presentation Transcript

  • SAP Budgeting, Planning and Forecasting Survey JANUARY 2014 Budgeting & Forecasting Finance Research
  • Industry Segmentation 66 Resp Other (please specify) Utilities, Energy, and Extraction Telecommunications, Technology, Internet &… Manufacturing Government Finance & Financial Services Insurance Healthcare & Pharmaceuticals Retail & Consumer Durables Nonprofit Food & Beverages Construction, Machinery, and Homes Advertising & Marketing Entertainment & Leisure Automotive 0.00% Budgeting & Forecasting Finance Research 5.00% 10.00% 15.00% 20.00% 25.00%
  • Geographic Locale of respondents Other, 48.48% United Kingdom, 30.30% Ireland, 3.06% Singapore, 4.55% Hong Kong, 3.03% Malaysia, 7.58% Budgeting & Forecasting Finance Research 66 Resp
  • ERP Type 63 Resp Other 17% ByDesign 2% B1 5% All In One 76% Budgeting & Forecasting Finance Research
  • Tools in Use 62 Resp Just SAP and Spreadsheets 35% A combination of a tool, spreadsheets and SAP 20% Microsoft Excel 20% Other (please specify) A custom built budget tool A specialized budget tool on the corporate network Just SAP A budget tool accessed over the internet Budgeting & Forecasting Finance Research
  • Microsoft Excel versions 63 Resp Excel 2013 (v15.0) Excel 2010 (v14.0) Excel 2007 (v12.0) Excel 2003 (v11.0) Excel 2002 (v10.0) Excel 2000 (v9.0) Budgeting & Forecasting Finance Research 54%
  • The most difficult part of month end Other Consolidations Reporting Workflow Allocations Variance Analysis Adjusting Journals 0 Budgeting & Forecasting Finance Research 5 10 15 20 25 30 54 Resp
  • Principal planning process pain Reporting Workflow Absence of driver based forecasting Performance against plan assessment Collaboration & participation Proper data gathering Lack of detail Budgeting & Forecasting Finance Research 56 Resp
  • How many users are involved in planning processes 25 1-19 20 15 10 250+ 20-49 5 0 101-249 Budgeting & Forecasting Finance Research 50-100 56 Resp
  • Participant locations 56 Resp SingleLocation, 11% Onecountry, 46.43% Multilocation, 89% Budgeting & Forecasting Finance Research Multicountry, 53.57%
  • Budget frequency other Multiple versions without a consistent process Yearly Budget, Monthly Forecast and Weekly Flash Yearly Budget and Monthly Forecast Yearly Budget Only Budgeting & Forecasting Finance Research 56 Resp
  • Sources for variance analysis Single tool 29% Multiple systems 71% Single tool Budgeting & Forecasting Finance Research Multiple systems 56 Resp
  • Can you do flexible comparisons of actual/plan? other Don't know No but we would like it No we don't need it Yes but it is inadequate Yes and it is adequate Budgeting & Forecasting Finance Research 56 Resp
  • Does your company use a rolling forecast? Yes, and it functions as desired Yes, but it does not suit our needs No, but we would like to No, and we have no interest in doing so Budgeting & Forecasting Finance Research 56 Resp
  • Organization hierarchies Province 2% Other 2% Legal Entity 3% Country 7% Business Unit 45% Regional 9% Division 11% Centralized 21% Budgeting & Forecasting Finance Research 56 Resp
  • Budget areas of concern 56 Resp 70% 61% 61% 50% 18% 11% Salaries & Wages Budgeting & Forecasting Finance Research Projects Indirect costs/overheads Capital Funds/Grants None of these
  • Budgeting methods used (non Sales) Other (please specify) Not Applicable - I indicated I am not involved in any of the above budget areas Performance Based Budgeting Zero Based Budgeting 2% 9% 14% 32% Incremental Budgeting Activity Based Budgeting Responsibility Center Management Budgeting & Forecasting Finance Research 36% 30% 43% 56 Resp
  • The most important budgets Other Funds/Grants 2% 4% Capital 18% Indirect Costs/Overheads Projects Salaries & Wages Budgeting & Forecasting Finance Research 53 Resp 32% 13% 27%
  • Important budget challenges Other (please specify) Reporting Workflow Absence of driver based forecasting Performance against plan assessment Collaboration & participation Proper data gathering Lack of detail Budgeting & Forecasting Finance Research 53 Resp
  • Cited reasons for challenges Regulations, 2% Data Quality, 32% ROI, 5% Data Distribution, 17% Lead Times, 17% Complexity, 29% Market Volatility, 20% Budgeting & Forecasting Finance Research 41 Resp
  • What variance is considered significant 20% 19% 20 1% 2% 3% 15 18% 4% 10 17% 5% 5 16% 6% 0 15% 7% 14% 8% 13% 9% 12% 10% 11% Budgeting & Forecasting Finance Research 51 Resp
  • Budget philosophy 52 Resp • • Other 36% Budgeting & Forecasting Finance Research • Mostly a mixture of top down and bottom up. It always starts as bottom up but ends up as top down.... • Mixed. Bottom up data is gathered and presented to management. Management issues certain guidelines based on which we (the budgeting team) negotiate with the various functions. • Top Down 35% Our budgeting is bottom up but we are often asked to find savings when all the budgets have been consolidated. • Bottom Up 29% Top down and bottom up which is the main issue. The most likely scenario along with a number of scenarios are made and presented to management who then decide.
  • Is non sales budget accuracy used as an incentive? Yes 35% No 65% Budgeting & Forecasting Finance Research 52 Resp
  • Is non sales budget accuracy improving? Not Sure 27% No 13% Budgeting & Forecasting Finance Research Yes 60% 52 Resp
  • Using SAP ERP Unsure 27% No 17% Budgeting & Forecasting Finance Research Yes 56% 52 Resp
  • Cost Center transactions used KP06 - Change Cost Element/Activity Input KPF6 - Cost Element Planning KOAB - Order Types: Budget Profile KP07 - Display/Planning Primary Costs KP46 - Change Statistical Key Figure Planning KP26 - Activity and Price Planning Maintenance KPD6 - Change Statistical Key Figure Planning OKOB - CO Orders: Budgeting profiles KP47 - Display Statistical key KO22 - Change Order Budget KPC7 - Display activity input planning KPE6 - Change Revenue Element Planning KPE7 - Display Revenue Element Planning KPF7 - Display CElem./Acty Input Planning Budgeting & Forecasting Finance Research 13 Resp 100% 50%
  • Project Systems transactions used CJ37 - Budget Supplement in Project CJ30 - Change Project Original Budget OPS9 - Budget Management Profile PS CJ38 - Budget Return in Project CJR2 - Project Systems Cost Elements CJ34 - Project Budget Transfer CJS2 - Change Statistical Key Figure Planning CJ40 Change Project Plan Budgeting & Forecasting Finance Research 7 Resp
  • ABC transactions used 2 Resp CP47 - Display Business Process Planning Statistical Key Figures CP26 - Change Business Process Planning Quantities/Prices CP06 - Change Business Process Planning Cost Elements/Activity Inputs CP46 - Change Statistical Key Figure Planning Budgeting & Forecasting Finance Research 100%
  • Profit Center transactions used 7KE1 - Plan Costs and Revenues Maintenance 7KE3 - Plan Inventory Maintenance 7KE5 - Change Statistical Key Figure Planning Budgeting & Forecasting Finance Research 5 Resp
  • Profitability analysis transactions used  Only one respondent out of the 13 transactional respondents indicated that they are using KEPM No 8% Yes 92% Budgeting & Forecasting Finance Research 1/13 Resp
  • Public sector transactions used 5/13 Resp CJCO - Carry Forward Project Budget FI - Funds Management IM52 - Process budget distribution Investment Management - Investment Programs IM32 - Change Budget of Inv. Prog. Position Investment Management - Investment Programs KOCO - Budget Carryforward for Orders FI - Funds Management FMBBC - SAP Budgeting Workbench Budgeting & Forecasting Finance Research 80%
  • Plant Maintenance transactions used  Only five respondents out of the 13 transactional respondents indicated that they are using KO22 Yes 28% No 72% Budgeting & Forecasting Finance Research 5/13 Resp
  • Real Estate transactions used  Only two respondents with one using FOKP and one FOKX Budgeting & Forecasting Finance Research 2/13 Resp
  • Special purpose ledgers  Only one respondent using GP12N Budgeting & Forecasting Finance Research 1/13 Resp
  • Cost object controlling KK46 Change Periodic Cost Object Planning Statsitical Key Figures KK47 Display Periodic Cost Object Planning Statsitical Key Figures KK16 Change Periodic Cost Object Planning Cost Elements KK17 Display Periodic Cost Object Planning Cost Elements Budgeting & Forecasting Finance Research 66% 3/13 Resp
  • Most commonly used to create  The results to this question were mixed with no significant indicators however the follow on responses indicated  57% felt that what they used to create budgets was easy to use  79% restricted access to this tool/transaction  All respondents relied heavily on standard or custom reports to review the data  92% felt that the review mechanisms were easy to use  43% provide access to the review mechanisms to many users Budgeting & Forecasting Finance Research 10/13 Resp
  • Maintaining the numbers from Excel We don’t bother, 22% We have a custom program, 6% We manually load the data 72% Budgeting & Forecasting Finance Research 18 Resp
  • No of objects per new cycle >100 50-100 18 Resp 56% 6% 10-49 <10 Budgeting & Forecasting Finance Research 28% 11%
  • No of objects per minor cycle >100 50-100 44% 17% 10-49 <10 Budgeting & Forecasting Finance Research 22% 17% 18 Resp
  • Are budgets adjusted mid year? Not Sure, 6% No, 19% Yes 75% Budgeting & Forecasting Finance Research 16 Resp
  • Is workflow used for adjustments*? Yes 47% No, 41% Would Workflow Help? Unsure 50% 17 Resp Yes, 44% No, 6% Not Sure, 12% *Adjustments are classified as reallocations or reassignments Budgeting & Forecasting Finance Research
  • How long is the budget cycle? 1-10 days More than 90 days 31 - 60 days 61 - 90 days Budgeting & Forecasting Finance Research 16 Resp
  • Biggest impact of delayed decisions  Reporting delays  Manual data maintenance and workarounds  Number goals become moving targets  Key Performance Indicator relevance Budgeting & Forecasting Finance Research 10 Resp
  • Respondents using BPC Yes 35% No, 65% Budgeting & Forecasting Finance Research Using BPC & Classic Planning In SAP 23 Resp Yes 33% No, 67%
  • How is BPC performance We’re using HANA! Excellent 9 Resp 11% Delayed 22% A struggle 22% Adequate Budgeting & Forecasting Finance Research 44%
  • Is BPC sufficient? Its' OK 9 Resp 11% Unsuitable for strategic views Unsuitable for operational views No Budgeting & Forecasting Finance Research 44% 11% 33%
  • BPC Reporting 8 Resp Other 13% We do all reporting from BPC and it is ok 38% We only run only some reports from BPC because it is slow 25% We run only some reports from BPC and it is fast enough We do not run reports from BPC Budgeting & Forecasting Finance Research 25% 0%
  • Satisfaction with BPC Other Yes Main Complaints: Slowness Shortage of Skilled resources to manage it 11% 11% Somewhat No Budgeting & Forecasting Finance Research 56% 22% Main praise: Easy to use Single place to go for the data 9 Resp
  • Conclusions  The data sample was smaller than we hoped for however it is indicative  SAP classic planning transactions are still widely used  Manually maintaining the data for classic planning transactions is still prevalent  Budgeting cycles are for the most part taking too long and this erodes effectiveness and relevance  Workflow solutions are data maintenance and decisions would be advantageous  BPC is evolving and the consensus is that new versions bring a better experience  Of particular significance is that SAP customers running BPC on HANA are having a much better experience than those on legacy Budgeting & Forecasting Finance Research
  • Follow up comments/questions Clinton Jones Director of Solution Management for Finance Clinton.jones@Winshuttle.com Learn More about Winshuttle for Budgeting Planning and Forecasting at http://www.winshuttle.com/financial-sap/budget-planning/ Budgeting & Forecasting Finance Research