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.
5. 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
7. 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
8. 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
9. 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
11. 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
12. Sources for variance analysis
Single tool
29%
Multiple systems
71%
Single tool
Budgeting & Forecasting
Finance Research
Multiple systems
56
Resp
13. 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
14. 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
16. 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
17. 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
18. 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%
19. 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
20. 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
21. 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
22. 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.
23. Is non sales budget accuracy used
as an incentive?
Yes
35%
No
65%
Budgeting & Forecasting
Finance Research
52
Resp
24. Is non sales budget accuracy
improving?
Not Sure
27%
No
13%
Budgeting & Forecasting
Finance Research
Yes
60%
52
Resp
26. 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%
27. 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
28. 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%
29. 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
30. 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
31. 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%
32. 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
33. Real Estate transactions used
Only two respondents with one
using FOKP and one FOKX
Budgeting & Forecasting
Finance Research
2/13
Resp
36. 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
37. 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
38. No of objects per new cycle
>100
50-100
18
Resp
56%
6%
10-49
<10
Budgeting & Forecasting
Finance Research
28%
11%
39. No of objects per minor cycle
>100
50-100
44%
17%
10-49
<10
Budgeting & Forecasting
Finance Research
22%
17%
18
Resp
40. Are budgets adjusted mid year?
Not Sure, 6%
No, 19%
Yes
75%
Budgeting & Forecasting
Finance Research
16
Resp
41. 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
42. 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
43. 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
45. How is BPC performance
We’re
using
HANA!
Excellent
9
Resp
11%
Delayed
22%
A struggle
22%
Adequate
Budgeting & Forecasting
Finance Research
44%
46. Is BPC sufficient?
Its' OK
9
Resp
11%
Unsuitable for strategic views
Unsuitable for operational views
No
Budgeting & Forecasting
Finance Research
44%
11%
33%
47. 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%
48. 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
49. 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
50. 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