Functionality

The core budgeting processes for a trading company are:

  • planning and budgeting of product sales and commercial expenditures;
  • planning and budgeting of supply and delivery costs;
  • planning and budgeting of production processes;
  • budgeting of basic and intangible assets;
  • budget creation for credits and loans;
  • budgeting of departments’ expenditures;
  • budget creation for the core financial indicators of a company: income and expenditures, money cash flow, balances.

Planning of demand level and sales prices takes into account the basic parameters of a sales market: sales segments (with possible detailed data down to customers or large customers), seasonality, and assortments. Depending on the planned income the general and per article promotion expenses are planned.

Supply planning considers the influence of currency fluctuations on the cost of acquired items (semi-products) both for vendor prices and for custom and other expenses. The system calculates exchange differences for accounts payable. In case of a distributed purchase area the system takes into account the directions of item (semi-products) supply for the stock and transport expenses.

Budgeting of departmental expenses provides the possibility to account each expense article per departments that are either functionally responsible for these expenses or participate directly in them. The budgets for acquisition or write-off of basic and intangible assets are created per departments and per the types of these assets; as well as the depreciation budget including the calculation of depreciated book values per asset types at the end of each month.

The built-in “what-if” analytical tools provide the calculation of key indicators for all business processes of a company with regard to the major micro- and macroeconomic factors that influence the business indicators. It is possible to create several budget versions for a year or a month ahead thus covering both pessimistic and optimistic scenarios in accordance with the market and economical situation.

Thus the created budgets contain the major business parameters:

  • gross profit budget (per each accounting unit and per delivery channes);
  • income and expenses budget (per each department);
  • money cash flow budget (per each department);
  • budgeted balance sheet (for the entire company).

All budgets are allocated per responsibility areas; competences and scopes of responsibility are defined for each director.

The solution supports the following financial structure of a company:

Level of responsibility area

Name of the responsibility center

Functions*

1.

Company

Consolidation and approval of all the budgets of a company

2.

Sales division

Sales management and control over gross profit indicators per regions and brands.

3.

Sales departments

Sales volume management; commercial expenses management.

3.

Marketing department

Sales price management, commercial expenses management.

2.

Supply division

Supply management in accordance with the sales plan, item purchase cost management, calculation of optimum inventory, transport expenses management.

2.

Financial division

Control over the budgeting processes regulations, functional expenses management within the own division.

2.

IT-division

Functional expenses management in the IT area.

2.

HR- division

Functional expenses management in the HR area.

2.

Maintenance and supply division

Functional expenses management in the maintenance and supply area.

2.

Production

Provision of product packaging and re-packaging, production cost management.

Management of the own expenses is included in the functionality of each responsibility center.

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