STADA

A key element of the implemented solution is a system of planning and control of budgets, implemented on the SAP BW IP platform. 

This system includes the following components:

Realized budgeting model is based on the use of fixed-format of operating budgets (units costs budget, development budget etc.) and their further transformation into standard financial reporting forms.

The process of operating budgets management can be divided into two levels — the level of the principal investigators in linear units and the level of financial services of the holding company. At the first level, there is a preliminary planning of departments requirements and management of plans for the sale of products. At the second level control is performed and, if necessary, correction of data introduced by units, and cost accounting, depreciation and billing costs between enterprises of the holding.This solution can significantly reduce the load on the control structure of the holding, while improving the quality of provision of data by linear units.

Budget model supports the following levels of organizational separation of costs budgets:

Calculation of the cost of goods manufactured

An important component of the solution is functionality of calculation of the planned cost per unit of output, the meringue specifications (map), the cost of components and labor standards of operations. High accuracy of the fetched data allows to evaluate the effect on the financial results of the Company of certain cost components in the context of one unit of output. Through this tool, the company is able to minimize the production costs and, consequently, increase the margins of business in general.

Calculation of payroll data

Strategically important component of the solution, of course, is the payroll. Now, on the basis of the developed forms (payroll form, regulations bonus form, standards of additional costs form, number of staff report, additional personnel costs report, tax rates from payroll form), Customer’s HR department can maintain employee data, calculate salary, plan benefits and rewards, administrate benefits, retirement plans, and operations related to the relocation of employees and transmit the information to the final P & L.

Formation of the financial statements on the actual data of the primary accounting is performed on the basis of turnover balance sheet accounting, complemented by sales data, costs, acquired OS / intangible assets, accounts receivable and accounts payable with the necessary level of detail (subdivisions, product groups, contractors, etc.).

In addition to budgeting for management were set the following fast web-reports:

• the profit and loss account in the management format, local;
• the profit and loss account in the management format, consolidated;
• the profit and loss account (in the accounting format);
• analysis per product.

These reports were integrated into a current at that time portal (VC-site). Report formats are shown in the overall color scheme of the portal.

Within the project primary cost of sales and production allocation algorithm was implemented so that it became possible in the final report (plan-fact) to detail the costs up to sales / production.

On the basis of the established system of budgeting and profit and costs management, consolidated management and accounting reporting was formed in accordance with local and international standards. Within the radius of consolidation were included 12 units of the holding of different directions and geography. Thus, to the management of the company became available not only accounting and management data, but also data, consolidated within the whole holding company the same as planned budget and deviations (%).

As a result of implementation of the system of planning and control of budgets based on SAP BW-IP STADA Company received:

• efficient  tool of planning data and primary records processing and analysis in accordance with the principles and approaches of the holding in the part of the calculation and assessment of financial performance of individual companies and the entire holding;
• reducing the time of budget planning and timing of the consolidated financial statements twice;
• simultaneous calculation of several versions of the budget;
• the possibility of data entry by employees who are directly responsible for the control of certain divisions’ budgets;
• excludes primary input mistakes and increase of reliability and validity of the budgeting data through the use of common reference data and calculation rules;
• single repository of planned and actual data from all units of the holding, regardless of the primary account system in use.

A distinctive feature of solution in use is the ability to calculate and simulate the planned cost of each unit of output, as well as the assessment of the impact on the financial results of indirect and direct costs of production and non-production departments.