For defining the Financial Plan of an Entity, the Financial Controller first selects the appropriate Financial Plan on the homepage. Next, the Financial Controller selects the correct Entity by clicking on the name of the currently selected Entity on the screen (see picture below).
Example - Screen: Financial plan menu and selection of the correct Entity
A popup window shows the Enterprise structure and allows for searching and selecting the appropriate Entity (see picture below). By entering (parts of) the name of the Entity in the search box or by expanding the Enterprise Structure the Entity can be found.
Example - Screen: Selecting the appropriate Entity
After selecting the Financial Plan and relevant Entity, the Financial Plan can be composed by running through and filling relevant data in the various sections in the navigation panel. The flow of entering data in these screens is depicted in the next sections.
9.1 Financial plan
The first screen (dashboard) shows two type of graphs in relation to the Financial Plan (see picture below). A choice can be made between 'Cashflow' and 'Positions'.
In viewing Cash flow for the selected Entity, a graph is shown (see picture below). This graph shows amounts and cash flow for a given period, in accordance with the cash flow statement. Operational Activities, Investment Activities, Financing Activities, and totals can be selected as depicted categories. You can also choose a display of only cash received or cash paid or both. The view is zoomable to month, quarter and year level.
Example - Screen: Financial Plan – Cash Flow
In viewing Positions for the selected Entity, the liquidity ending balance and/or net debt are depicted (see picture below). Again, the view is zoomable to month, quarter and year level. It is possible in the dropdown to select another Financial Plan, to make a comparison with the current plan; in the picture below this is Test Plan Q2-2022.
Example - Screen: Financial Plan – Positions
9.2 Source Data
In the next financial Plan section data can be imported from Reaforce or Excel as source systems for Financial Planning & Analysis.
9.2.1 Import Reaforce projects
Reaforce is the system used by project developers for optimizing the feasibility of development projects and making forecasts of related cash flows. Reaforce can be used as a source system for FP&A. Section 5.1 describes how to connect Reaforce projects to FP&A.
After the creation and setup of the Financial Plan by the Global Administrator, the Financial Controller
can import Reaforce (building-, land- and construction) projects. To do this, he selects in the navigation panel Source Data - Reaforce (see picture below).
Example - Screen: Financial plan – Source Data Reaforce
Per project, a status indicates the relation between a FP&A Entity and a Reaforce project publication. Possible statuses are listed in the picture below. The Financial Controller can see which publications are available for import. By selecting these publication and clicking the Import button, the Reaforce publications are imported, and cash flow forecasts are added to the Financial Plan.
Then, based on the applied revenue and cost recognition, the "translation" from cash flow to profit & loss account and balance sheet is defined (see Section 5.7).
Example - Statuses relevant for importing Reaforce projects
Depending on the import preferences set when creating the financial plan, the user can choose an alternative publication category and/or publication.
It is also possible to remove imported publications from the Financial Plan, by ticking the checkbox per project for these publication(s) and click on the Delete button.
9.2.2 Import Excel projects
Importing Excel files is possible for the cash flow statement, the profit and loss account and the balance sheet. This allows projects (which are not in Reaforce) to be loaded. Opening balances and adjustments can also be imported.
Before being able to import Excel Projects, the structure for these projects needs to be predefined (section 5.2.2).
For importing projects from Microsoft Excel, the Financial Controller selects in the navigation panel Source Data – Excel (see picture below) after which the following steps are followed:
Example - Screen: Financial plan – Source data Excel
Step 1. Creating an Excel template
Click on the button Download Excel template. The resulting Excel file can be stored locally for entering project data. The structure of the Excel file is predefined. Therefore, separate Tabs have been created for cash flow, profit and loss and balance sheet.
Step 2. Modifying the Excel file
The downloaded Excel file is ready for filling with data of one or more projects (see picture below). The following information needs to be entered on every Tab:
- The name of the Financial Plan. This is automatically added in when generating the Excel template.
- The name of the entity. This is automatically added when generating the Excel template.
- You need to fill in per Excel Project, per cash flow line:
- The project name
- The project owner
- The start position
- The amounts per month
Example - Excel import example – Cash Flow data
It is not allowed to change the structure of the Excel file. This will lead to errors when importing the Excel file in FP&A at a later stage. It is possible though to copy rows in order to create cash flow lines according the same structure for other Excel projects. See the Project 2 lines in above picture, that are copied from the Project 1 lines.
Step 3. Importing the Excel file
By clicking Import Excel file a pop-up will show up. Click on browse to search your local storage for the correct modified file, click on import to execute the import action. A validity check is executed on the background regarding the data in the Excel file. In case of validation errors, these errors will be visualized to the extent possible. In case of errors, the file is not imported. Modify the Excel data and attempt to reload the data into FP&A. A notification is generated when the Excel import is completed successfully (see picture below).
Example - Screen: Financial plan – Source Data Excel – Error messages
After loading and validating the Excel data, the data is processed in FP&A. Existing Excel Projects data in FP&A is deleted and overwritten, for all newly imported Excel Projects. An overview is shown of successfully imported data. The imported Excel cash flow data, profit and loss data and balance sheet data is also visible in the Financial Statements under the Excel Projects header (Section 9.8).
Lastly, it is possible to remove imported Excel data. Choose Delete selected Projects to remove data for all Excel projects that are selected in FP&A.
9.3 Revenue & Cost Recognition
Within the Financial Plan, it is possible by the Financial Controller to deviate at Project level from the Revenue & Cost Recognition that has been defined at higher level (Enterprise or Entity).
Operation is the same as the template described in the section on Enterprise Base data (Section 5.7)
At the level of the Entity, the templates used become visible. In the column “Project configuration ” it is indicated at which level (company, entity or project) the template is active (see picture below).
Example - Screen: Financial plan – Revenue & Cost Recognition
By Uploading, the revenue and cost recognition will be applied for the selected project.
9.4 Opening Balance Liquidity
Within the Financial Plan, the Financial Controller can enter the Opening Balance Liquidity per Entity (see picture below). In this screen, the Opening Balance / bank balance per start date of the Financial Plan needs to be input therefore.
To do this, go to Input – Opening Balance Liquidity in the navigation panel.
Example - Screen: Financial Plan – Opening Balance
9.5 General Expenses
Within the Financial Plan, the Financial Controller can enter General Expenses per Entity in accordance with the cash flow structure (see section 5.2.1).
To do this, go to Input – General Expenses in the navigation panel.
General Expenses input takes two steps:
Step 1. Definition of the General Expenses
Click on Add General Expense. A slide-in appears, in which he fills a number of fields characterizing the General Expense (see picture below):
- General Expense Name
- Selection of the right General Expense category
- The amount en whether the amount is per month, quarter or year
- Whether the amount in- or excludes VAT, or that VAT is not applicable (in the VAT field)
- The VAT tariff (if applicable, in the field VAT category)
See section 5.5 for the definition of these categories
- Start Month and End Month
- Whether VAT is deductible or not (in the field Tax)
- Which Index Series is applicable
See section 5.3 Index series (Enterprise) and section 6.1 Index Series (Entity) for the definition of these series.
The start month and end month of the General Expense period may deviate from the start date and the end date of the Financial Plan.
By entering an amount and using Indexation and Payment Schedules the system will calculate cash flow amounts per month.
Example - Screen: Financial Plan – General Expenses, step 1
Step 2. Payment Schedules for General Expenses
The user indicates which Payment Schedule to use for the General Expense (see picture below).
It is possible to choose for an existing Payment Schedule on Enterprise level (section 5.4) or for a Payment Schedule on Entity level (section 6.2).
It is also possible to enter a custom Payment Schedule for the General Expense. Choose Custom Schedule in the slide-in. Enter the Payment Schedule details as is similar to the definition of a standard Payment Schedule in the sections mentioned above.
Example - Screen: Financial Plan – General Expenses, step 2
After creating a General Expense, a new line appears showing the General Expense details.
The system calculates the amounts per month based on the defined characteristics of the General Expense. Further details of a General Expense are shown at the bottom of the screen by clicking on the General Expense line in the Name column (see picture below).
An infinite number of General Expense lines can be added to a Financial Plan.
The General Expense lines can be edited by clicking on the line in the Name column which reopens the slide-in.
The General Expense lines can be deleted by ticking the checkbox at the beginning of the relevant line and then click on the Delete button.
Example - Screen: Financial Plan – General Expenses, overview
9.6 Loan (incoming and outgoing)
Within the Financial Plan, the Financial Controller can enter loans (incoming and outgoing) per Entity. Incoming Loans means the Entity has a Loan where money is borrowed from another Entity. Outgoing Loans means the Entity has a Loan where money is lend to another Entity.
To do this, go to Input – Loan (incoming) or Loan (outgoing) in the navigation panel.
Since the definition of incoming and outgoing Loans is identical they are described together, using an outgoing Loan as an example.
By clicking on Add Loan, a new Loan is added. A slide-in appears in which the following Loan characteristics are added:
- Name of the Loan
- Start Month and End Month of the Loan
- The Loan amount
- The Payment Frequency of the principle (year, quarter, month, or period end)
- The Interest Rate percentage
- The Interest Payment Frequency (year, quarter, month, or period end).
Example - Screen: Financial Plan – Loan outgoing
After creating a Loan, a new line appears showing the Loan’s details. The system calculates the amounts per month based on the defined characteristics of the Loan.
Further details of a Loan are shown at the bottom of the screen by clicking on the Loan line in the Name column (see picture above).
An infinite number of Loans can be added to a Financial Plan.
The Loan lines can be edited by clicking on the line in the Name column which reopens the slide-in.
The Loan lines can be deleted by ticking the checkbox at the beginning of the relevant line and then click on the Delete button.
9.7 Dividend / Share Capital
Within the Financial Plan, the Financial Controller can enter Dividend or Share Capital transactions from a parent or subsidiary perspective. There are four transaction types that a Financial Controller can choose from (see picture below):
- A Dividend payment from this entity to a parent entity
- A Share Capital injection from a parent entity to this entity
- A Dividend receipt from a subsidiary to this entity
- An investment from this entity into a subsidiary
To do this, go to Input – Share Capital in the navigation panel.
A new transaction is created by clicking the Add transaction button. A slide-in appears in which the desired transaction type is selected and the fields below are filled in:
- Transaction name
- Period (month) in which the transaction takes place
For transaction types:
- A. Dividend payment to parent
- D. Investment in subsidiary
you can opt for an internal or external Counterpart Entity.
If you select Internal, the transaction is automatically processed at the Counterpart Entity as well. To do this, select the correct Entity from the drop-down list.
If you select External, the transaction will only be processed in the Entity itself. Free text can be added to this.
For transaction type:
- A. Dividend payment to mother
you can, in addition to a one-time payment, also choose to apply a Dividend Schedule by ticking the checkbox (see picture below).
In the Dividend Schedule it can be determined per month of the calendar year what percentage of the distributable profit must be paid as Dividend and over which period. The Dividend payment is then automatically calculated by the system and plotted in the Financial Plan.
Example - Screen: Financial Plan – Share Capital transaction types
After the Dividend Payment has been created, it will appear in a new line on the screen. Further details of the Dividend payment to parent are shown at the bottom of the screen by clicking on the Dividend payment line in the Name column. In that screen it is also possible to make manual adjustments in the Dividend adjustment line (see picture below).
Example - Screen: Financial Plan – Share Capital transactions
Also after creating other transaction types in Dividend or Share Capital, these appear on the screen in a new line.
An infinite number of transactions can be added to a Financial Plan.
Transactions, initiated from the selected Entity, can be edited by clicking in the Name column in the line which reopens the slide-in.
Transactions, initiated from the selected Entity, can be deleted by ticking the checkbox at the beginning of the line on the relevant line and then click on the Delete button.
This means that internal transactions can only be edited/deleted from within the paying entity.
Transactions, where the selected Entity is the counterparty, are shown in a gray line and cannot be changed. The user is notified of this when hoovering over the line.
9.8 Financial Statements
The financial statement consists of Cash flow, Profit & Loss and the Balance Sheet.
Profit & loss and Balance sheet are only visible if these components have been purchased.
At the screen Financial Statements – Cash flow (see picture below) calculated Financial Plan amounts are listed over time for the Entity according to the financial structure.
Example - Screen: Financial Plan – Cashflow (collapsed view)
The picture below shows an expanded time horizon (up to quarterly level) and Financial Structure (till level 5).
Example - Screen: Financial Plan – Cashflow (expanded view)
For both Reaforce Projects and Excel Projects, by clicking on the project it is possible to open a new screen showing the cash flow forecast for the specific project. The picture below shows the possibility to drill down, the next picture the screen after drill down.
Example - Screen: Financial Plan – Cashflow (drill down on a project)
Example - Screen: Financial Plan – Cashflow (drilled down on a project)
By clicking on the Entity name at the top left of the screen it is possible to return to the Cash flow screen of the Entity.
It is also possible to view the financial statements taking into account the underlying subsidiaries or as without taking into account these subsidiaries.
- Consolidated including subsidiaries; subsidiaries (underlying entities) are included in the figures. In the Enterprise structure, you can drill through per project type to the underlying Entities and associated projec
- Consolidated excluding subsidiaries; subsidiaries (underlying entities) are included in the figures. Per project type, you can drill through to the underlying projects (per Entity).
- Entity only; subsidiaries (underlying entities) are not included in the figures.
At Entity level, you can also select the view.
- Traditional view; shows the financial statements without aggregated values (values are shown per entity per project)
- Controller view; shows the financial statements with aggregated values at underlying cash flow levels of all projects, objects and Excel imports.
9.8.2 Profit & Loss
At the screen Financial Statements – Profit & Loss (see picture below) the calculated amounts from the Financial Plan for the Entity are plotted over time and shown according to the accrued structure.
The grid has the same functionality as the Cash Flow view .
Example - Screen: Financial Plan – Profit & loss
9.8.3 Balance sheet
At the screen Financial Statements – Balance Sheet (see picture below) the selected Entity’s assets and liabilities are presented.
The grid has the same functionality as the Cash Flow view.
Example - Screen: Financial Plan – Balance sheet
It is possible to store Notes connected to the Financial Plan, per Entity. First select the appropriate Financial Plan and Entity and then navigate to Notes screen (see picture below).
Example - Screen: Financial Plan – Notes
Notes can be stored with relevant formatting, similar to working with a text processing application. It is also possible to copy and paste text from other applications. At this time, it is not yet possible to paste pictures or the formatting of tables.
After entering the Notes, click the Save button to store the entered text.