Awara IT solution supports top-down and bottom-up flexible budgeting processes, allows making forecasts, comparing facts and forecasts of previous periods, as well as analyzing data at all consolidated levels. The planning procedures integrated in this solution are implemented on the basis of key indicators, and figures, the division of costs into fixed and variable, as well as planning for fixed assets, investments, and payroll. The main advantage of this solution is to significantly reduce budgeting time.
Robert Bosch is one of the world’s leading companies and is represented in 60 countries. Its Russian subsidiary offers manufactured products, automotive equipment, industrial equipment, and security systems.
Corporate standards of business planning require a lot of calculations and figures for hundreds of cost items and financial responsibility centers. Before the introduction of the solution in Robert Bosch’s Russian subsidiary, all calculations were supported by Excel and given the great number of cost centers, items and figures, such practice required a lot of work and human resources each time budgets needed to be recalculated.
This issue was solved by increasing the number of employees working on planning and by using temporary Excel files but the final result was not as good as it was expected to be. Thus Microsoft BI module was considered as the optimal solution that didnt require additional team efforts and additional resources.
The proposed solution should first of all fully meet the Client’s corporate business plan model and provide accurate calculations. Unlike other solutions, the introduction of Microsoft BI did not require the restructuring of the Client’s existing business processes and standards, but it strictly adhered to the budgeting methods adopted by Robert Bosch.
The solution consists of 7 main units:
- Revenue budgeting, including the possibility of calculations based on defined KPI;
- Fixed cost budgeting, including the possibility of calculations with natural figures;
- Variable cost budgeting taking into account planned turnover budgeting;
- Distribution of general costs among financial responsibility centers, including setting up hierarchical key distribution and allocation;
- Investment planning and calculation of planned depreciation;
- Payroll and staff planning according to analytical parameters;
- 7. Calculation of planned markdowns and stock reserves, as well as accounts receivable.
All budgeting results are available through a multi-dimensional analytical processing bank, in which a hierarchy is defined for financial responsibility centers, and cost/revenue items. It is also possible to see calculation results at different levels of organizational hierarchy (for example, turnover calculations).
This processing bank is presented to users as a consolidated Excel table, in which all reports can be made for any aggregated group and different sections.