Integrated Financial
Management System
Creative Programs Inc.
Budget and Margin Analysis
Process Sign-Off
March , 2007
Proposed Changes
A.
Use of SAP shall provide the following:
1. Reports on cost, revenue and profitability analysis by dimensions
- Posting to revenue and expense accounts are always attached to
responsible unit
2. Creation of internal orders for those projects/programs that are
temporary in nature. These IOs can be settled to the assign real
cost centers on month-end & these IOs can be closed anytime
3. Budget monitoring through online commitment and availability checking.
- Budget are committed once requisition is
processed.
4. Establish standard allocation rule and receiver of charges and regularly
execute allocation in SAP through ABS-CBN Cost Accounting
Staff
BMA - Planning and Development
Design Highlights
•
Master data will be centrally maintained by the Cost Accounting Unit
(CAU)
•
Budget Department of ABS-CBN Broadcasting Corp. will be responsible
for coordinating and organizing budget activities for all subsidiary
companies.
•
ABS-CBN Budget Department will provide OLAP budget templates for
use of all subsidiaries. A budget manual documentation will also be
provided.
•
Each subsidiary will be provided with at least one access ID to OLAP so
they would be responsible for encoding their own budget into the
system.
•
Consolidation of budget will be done in OLAP.
•
Allocation of overhead costs to divisions/programs will not be included
in OLAP. This will be done in SAP.
BMA - Planning and Development
Design Highlights
•
Budget will be finalized and uploaded to SAP two weeks before yearend or immediately after budget approval.
•
Budget after allocation run in SAP will be downloaded to OLAP to get
“should be” budget after allocation.
Personnel who is responsible for performance creates the budget
•
•
Create budgets on the basis of planned production and external
activities (e.g. programs, projects, special events)
•
Centralize maintenance of master data for controlling objects such as
cost centers, profit centers, internal orders and other cost objects under
Cost Accounting Unit of ABS-CBN.
•
Plan operating cost not only for expenditures from external sources but
also internal activities such as services rendered by a cost center to
another cost center via allocation.
BMA – CO Hierarchy
ABSCBN
0002
Controlling Area
Creative Programs, Inc.
3300
Company Code
Profit Center
Channels
Cost Center
Channels
Internal Order
Cinema 1
Corporate Profit Center
Operations
MYX
HR
Hero
Finance
Lifestyle
Budget Execution and Control
Design Highlights
•
•
•
•
•
•
Implementation of ABSCBN parent budget policies;
Request of budget changes for unbudgeted CAPEX and budgeted
CAPEX projects, transfer, supplement or additional budget through
On-line Budget Appropriation Form in replacement of manual MCAF
On-line budget monitoring through commitment management
facility
Facilitate performance monitoring by providing units with budget
reports in SAP and EIS
Update of cost center, internal order and profit center balances via
event-based postings
On-line allocation of actual overhead costs to cost centers and
internal orders using clearly defined allocation rules
Margin Analysis
Design Highlights
•
Presence of formal framework in margin analysis and common
corporate view of profitability
•
Assignment of direct and indirect costs using appropriate bases to
the activities, products, and customers
•
Easy availability of profitability reports via SAP reporting facility
•
Provide users with flexibility of being able to create custom reports
appropriate for their needs (centrally maintained in Manila)
Settlement
Order
Type
Order number
Short text to
describe IO
Company
Code
Category
Settlement
Receiver
%
Settlement
Type
Source
ZSRV
RO0733000000
CPI: Creative
3300
CTR
63850
22
FULL
20
CTR
63900
26
FULL
20
CTR
63950
26
FULL
20
CTR
64000
26
FULL
20
ORD
PC1976000000
22
FULL
10
ORD
PC2001000000
26
FULL
10
ORD
PC2026000000
26
FULL
10
ORD
PC2051000000
26
FULL
10
CTR
63850
46
FULL
20
CTR
63900
18
FULL
20
CTR
63950
18
FULL
20
CTR
64000
18
FULL
20
ORD
PC1976000000
46
FULL
10
ORD
PC2001000000
18
FULL
10
ORD
PC2026000000
18
FULL
10
ORD
PC2051000000
18
FULL
10
ZSRV
RO0633000000
CPI: Broadcast
Operation
3300
CPI Allocation Cycles
Description
Sender
GL Account
Receiver
Basis for
Allocation
Insurance Expense
Admin CC
702150001 - Insurance – Structure,
Building & Equipment
All CCs
Acquisition Cost
Rent Expense
Admin CC
702020001 - Rent Expense
All CCs
Equal Share
Utilities – Electricity
Expense
Admin CC
702020008 - Utilities - Light
All CCs
Equal Share
Utilities – Water
Expense
Admin CC
702020009 - Utilities Water
All CCs
Equal Share
Janitorial & Security
Services
Admin CC
702170002 - Janitorial, Messenger
& Maintenance
All CCs
Equal Share
All employee cost
benefit
Strategic
Marketing
CC
701010001 –
701010003 –
701010008 –
701010009 –
701010010 –
Contribution
701010012 –
701010014 –
Separation
All Channel
CCs
No of Employees
assigned on
each channel
Salaries
Overtime Pay
13th Month
SSS Philhealth & ECC
Pag ibig Fund
Vacation & Sick Leave
Retirement &
CPI Allocation Cycles
Description
Marketing Expense
Sender
Power
Bundle CC
GL Account
Receiver
702010103 – Marketing Expense
702040003 – Mktg&Merch
Supplies Expense
702070001 – Ad & Promo –
Print
702070004 – Ad & Promo –
Grnd
702070005 – Ad & Promo Others
All Channel
CCs
Basis for Allocation
Equal Share