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Expense Planning

In the economic climate of the last decade, corporations are keeping a tight eye on expense spend. What is your departments spend versus budget? Are you overspending on Travel and Entertainment? How are you performing relative to other Cost Centers?

One customer had seen a 35% spike in year-over-year expense spend and needed to understand where that was happening. They needed the details. They wanted to be able to slice-and-dice. And once measured, they wanted to be able to monitor ongoing spend to budget to make sure things didn’t balloon again.

SAP BPC has powerful capabilities for not only capturing expense plans, but also providing detailed analysis of actual vs. planned spend. VantagePoint has delivered a number of expense planning solutions, built in the SAP EPM tools and integrated with the more detailed plans for payroll and capital.

By integrating SAP EPM with your company’s ERP system, the SAP EPM expense model can be dynamically updated with the latest expense spend per department and by account for up-to-date trending analysis.

With an SAP Business Planning and Consolidation solution for Expense Planning you can: 

  • Capture total spend by category per Cost Centers / Departments
  • Utilize spreading, trending, or seasonality functionality to capture periodic budgets
  • Define planning system to support: zero-based planning, driver-based, unit * cost, growth factors, or top-down / bottom-up approaches
  • Deliver scenario modeling capabilities to perform what-if analysis
  • Import actual data to analyze spend variances by cost centers, or by cost categories
  • Plan discretionary items (such as travel or conferences) at a sub-ledger level of details
  • Capture commentary to provide backing details for the plan
  • Integrate detail plans such as Payroll (captured by employee or job) or capital (captured by project or asset)
  • Allocate department aggregated expenses
    • Cost center to cost centers
    • Corporate overhead to lines of business / products / customers
    • Direct or indirect
    • Straight-forward or waterfall
    • Driver-based

Expense and Capital Planning