Financial Performance Management

FP&A Done Right: Forecasting Revenue for Services-Based Businesses: A Growth Factor

August 19, 2022 by Revelwood

More than half of professional services firms can’t forecast project revenue beyond six months. Workday’s Mark David and Justin Joseph share insights into how organizations can get revenue forecasting right, even when business is anything but usual.

What is it about revenue forecasting that can be so challenging? For people-based industries such as professional services, their project revenue is based on talent supply. And people—including all 109 billion of them who have ever lived on Earth—can be difficult to predict.

“People are highly variable,” said Justin Joseph, senior director of product strategy at Workday. “They aren’t always available. They go on vacation. And, as we’ve experienced the past few years, people leave, and there can be skills shortages. So there’s a lot of variability in how professional services companies generate project revenue.”

Beyond the variability of their employees and the impact of unprecedented trends and events, professional services firms also deal with different systems in different parts of the organization. These silos can cause data to be inconsistent and inaccurate—challenges that only get worse as an organization grows.

“The larger an organization, the more complex things get,” said Mark David, vice president of solution management at Workday. “Organizations then become more reliant on processes to manage projects and people, but that requires accurate data from disparate places.”

In this episode of the Workday Podcast, we’re 100% focused on revenue forecasting for professional services, with guests Joseph and David. They share trends impacting firms, the pros and cons of different types of forecasting, and how firms can start to solve their challenges to better plan and forecast.

Here are a few highlights of our conversation, edited for clarity. Be sure to follow us wherever you listen to your favorite podcasts, and remember you can find our entire podcast catalog here.

“The reason most companies can’t forecast their revenue more accurately is because they have different systems and data across their lines of businesses and services. And all those different systems mean that you have data that’s going to be wildly inconsistent. You’ll need a lot of integrations to pull this data together to make sure that you have an end-to-end process for revenue forecasting.” —Justin Joseph
“A year ago, a customer who runs a 5,000-employee professional services firm told me the one thing he needed was a good revenue forecast more than anything else right now. As you can imagine, this was especially needed with what’s happened over the last few years, which have made forecasting where your business is going even more difficult.” —Mark David
“With unexpected scenarios, you’re following the exact same processes as expected scenarios, but you have to forecast at a much faster pace and much more frequently because your assumptions are changing so rapidly, maybe hour by hour or day by day. How quickly can you pull this data together and then model it and share it out? It may sound contradictory, but they’re similar. Speed is ultimately what’s different.” —Justin Joseph

This blog post was originally published on the Workday Adaptive Planning blog.

Workday Adaptive Planning Tips & Tricks: Data Integration and the Planning Data Source

August 17, 2022 by Marc Assenza Leave a Comment

Did you know that Workday Adaptive Planning integrations can use the metadata in Adaptive Planning as a part of the integration?

It’s true! The process requires setting up the credential and setting up a data source for Adaptive Planning. You must have the proper credentials yourself within Adaptive Planning to set this up.

To set up the credential you will need to do the following:

From the Workday navigation button, go to Integration🡪Design Integrations

You will arrive at the following screen. Under the Component Library section click on the Credentials option.

From the list that is presented, the first option is to Create a new Credential, select this.

Once clicked, the following list will be presented, select Planning Credential, and give it a name. Giving it a name that is meaningful matters, Adaptive certainly fits the bill here.

Once created, you will see that your credential exists under credentials in the Component Pane, but no access to the data source has been granted yet because no authorized user has been assigned. To assign an authorized user (a user with the rights to perform all these steps) to the credentials, you follow the on-screen instructions and click “Authorize” under the Actions panel.

When you click authorize, the following appears, enter the credentials in the pop-up screen and click “Authorize” on the lower right-hand portion of the screen.

Next you will want to click the Save button to save the login information with the credential.

The next step will be to Test the connection. This is done by clicking on “Test Connection” under the Actions pane. A pop-up window will display, click on “Test.” If the login credentials are valid, the following window will appear and the credential is all set up.

To set up the data source, you will need to do the following:

Under the Component Library, click on Data Sources.

Click on the option “Create New Data Source.”

Here again select Planning Data Source and give it a meaningful name, keeping the name the same in this example and calling it Adaptive.

Once the Data Source is created, the following screen will appear. Here you will assign the Data Source the Credential that was created in step 1 and save it.

You will notice that no tables have appeared. That is because we have not defined them yet.

On the left-hand side under Actions, click on “Manage Sources.”

The following popup window will appear, click on the sources folder first, then click on the Add button.

You will now see a list; in the example we will import metadata about Accounts and Levels. Those two will be selected.

You have the option to rename the source, so Accounts and Levels will be used in place of the default name.

No tables are in the Data Source yet because the Data Source needs to be saved and the structure needs to be imported. Click the Save option first followed by “Import Structure.”

The table structures are now present as seen below.

The next step is to import the data, this is done by clicking “Import Data” under the Actions pane.

That’s all it takes to set up the credential and the Adaptive Data Source, now you’re ready to utilize it in the Staging area for integration however you see fit!

Visit Revelwood’s Knowledge Center for our Workday Adaptive Planning Tips & Tricks or sign up here to get our Workday Adaptive Planning Tips & Tricks delivered directly to your inbox. Not sure where to start with Workday Adaptive Planning? Our team here at Revelwood can help! Contact us info@revelwood.com for more information.

IBM Planning Analytics Tips & Tricks: Shortcuts in PAW Models

August 16, 2022 by Revelwood

Did you know there are shortcuts you can use in IBM Planning Analytics Workspace (PAW) when creating new models?

In legacy tools such as Architect, required that you create your dimensions, cubes, processes and chores one piece at a time. IBM Planning Analytics now provides shortcuts to streamline this process.

Watch our latest IBM Planning Analytics Tips & Tricks video to see Lee Lazarow, FP&A Technology Director, demonstrates how to use the section “modeling tools” to create your dimensions, cubes, processes and chores more quickly and easily.

In the past you would need to create each component piece by piece, navigating back and forth between the components. Now you can create a cube – and all its components – in nearly no time!

Check back next month for a new IBM Planning Analytics Tips & Tricks video!

Revelwood has worked with IBM Planning Analytics / TM1 for more than 27 years. We’ve partnered with hundreds of companies on the design, development, maintenance and updates of IBM Planning Analytics applications, across every industry. Have a challenge with Planning Analytics / TM1? We can help you!

See more IBM Planning Analytics Tips & Tricks videos:

IBM Planning Analytics Tips & Tricks: Displaying Percentages on a Planning Analytics (PAW) Pie Chart

IBM Planning Analytics Tips & Tricks: Color Schemes in a Waterfall Chart

IBM Planning Analytics Tips & Tricks: Defining a Process Within Existing Chores

Modern Accounting: Why Does Intercompany Accounting Crash Your Close?

August 11, 2022 by Revelwood

This is a guest blog post from our partner BlackLine, explaining why intercompany accounting is killing your close.

It’s a fact of life that if you can’t reconcile your intercompany accounts, you can’t close your books. The goal of intercompany accounting is netting to zero across the entire company. However, as multinational companies know, that is easier said than done—especially when it comes to billing services.

Deficient processes anywhere in the intercompany chain cause delays in controllership and impact a company’s monthly, quarterly, or annual close.

The Challenges of Intercompany

Without standardized intercompany processes, the risk of problems and delays that “kill your close” is high.

Poorly executed intercompany agreements

Intercompany accounting starts with an agreement between parties acting as either a seller and/or buyer to other entities in the multinational corporation. An intercompany agreement specifies what type of products will be delivered or services will be billed. It will also include details such as who is to be invoiced, what indirect taxes apply, and may even note restrictions around getting money out of the country where the buyer entity operates. If no actual agreement is in place, or if the agreement is poorly executed, mistakes must be undone and disagreements resolved. This takes extra time.

Incorrectly booked invoices

Problems progress from there as some invoices are simply not booked correctly. Perhaps a lower-level employee new to their position inadvertently books an invoice incorrectly or in a way that is inconsistent with the intercompany agreement. When it comes time to roll up the accounting, there is a disconnect between how the entities involved in the transaction accounted for that invoice. Ultimately, late in the game, the accounting team discovers these inconsistencies and must investigate where the disconnect occurred and effect a correction. This problem is further compounded as a multitude of inconsistencies roll up through the organization increasing by both number and associated value. If these issues cannot be rectified by the end of the month or quarter, they will become costly to plug.

Lack of communication

A lack of communication and standardized processes creates problems on both sides of intercompany transactions. For example, if a seller sends an invoice to the wrong distribution list or responsible person, the invoice never gets booked. Without proof of a counterparty confirmation, of a person saying, “I agree to book this,” the risk of a delay is high.

Problems on the buyer’s side arise when invoices are not processed properly. The buyer needs to book whatever service or product they receive to the right function, to the right department. This must be done in a timely manner to minimize disruptions.

Inquiries and disputes

The expedient management of inquiries and disputes presents a final challenge. Even when intercompany invoice trafficking is efficient, the person receiving the invoice may disagree with the charges. In some cases, buyers don’t communicate that they have a dispute until an invoice is overdue, putting additional time pressure on the resolution process.

Considering how many invoice disputes happen throughout the year, it’s easy to see how a poorly executed inquiry and dispute management process can critically slow a company’s close. This is further frustrated when buyers or sellers are organized in silos managing their own entity’s books while working to keep their costs down. With this perspective, if they don’t agree to pay an invoice, it doesn’t affect their margins, targets, or KPIs. They are not concerned with how an outstanding intercompany invoice impacts the larger organization.

Is a Shared Services Team the Answer?

These intercompany challenges often drive the creation of shared service centers or centers of excellence which are tapped to manage intercompany invoicing across the enterprise. When well-formulated, these organizations can streamline intercompany invoice management and, seeing the larger picture, should increase accuracy and timeliness. However, these teams must be more than dedicated personnel assigned to intercompany tasks. Without thoughtful process design and automation and separated from the sourcing decisions by continents and time zones, a shared services team may actually increase errors. A poorly run, poorly trained shared services team also suffers from staff turnover—exacerbating mistakes.

Pressure On the Accounting Team

For the accounting team, trying to tie up the intercompany accounts at the corporate level can be extra challenging. They must track down knowledgeable parties at the entity level that may be operating in different time zones and with different work rules and holiday schedules. They face additional stress when the accounting close deadline looms, often having to spend days and nights trying to source information and resolve issues. Often, they are forced to make unfortunate write downs when time is up. The pressure becomes worse at the end of the year when issues cannot be carried over to be resolved in the next quarter.

How to Address These Intercompany Challenges

It is important to get your intercompany process right from the start. Make it well-defined and executed so that you’re not wasting time, money, and resources. Intercompany should be a net-zero game so a good policy ensures that information is right on both sides of the transaction at every stage of the process.

To prevent intercompany from killing your close, you need to establish a global intercompany standard. It should:

Eliminate the silos and outline how to get things done
Make sure invoices are booked into the right accounts and in a timely manner
Specify timing—for example, dictate the last day in the month/quarter that intercompany charges must be billed
Improve training for the shared service center team, especially new members
Make entity-level staff or shared services teams tie up outstanding intercompany transactions early enough so that the business unit and corporation are completed in a timely manner
Give you time to reconcile

How BlackLine Can Help

BlackLine helps companies centralize the management of intercompany processes, technology, and master data to create improved tax and resource efficiency while reducing operating costs. Our solution automates intercompany accounting by translating relevant data into compliant invoices and documentation to support intercompany transactions, real-time audits, and improved transaction transparency while reducing operational costs.

The art of establishing company-wide process uniformity requires experienced intercompany pros. BlackLine has guided consistency across customer organizations improving compliance and reducing risk at some of the world’s largest corporations. Uniformity and consistency are important defense lines in any transfer pricing audit as they communicate a sense of control and defend against disorder.

IBM Planning Analytics Tips & Tricks: Customizing Background Colors for Data and Header Cells

August 9, 2022 by Dillon Rossman Leave a Comment

Did you know that update 76 of IBM Planning Analytics allows you to customize background colors for data and header cells within your Planning Analytics Workspace (PAW) views?

To customize these colors, click on a view within a page in PAW and open the “Properties” menu.

Table

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Within the “Properties” menu expand “Text Properties”. Within this section you will notice three subsections: “Data Cell”, “Row Header”, and “Column Header”. Each of these sections includes a setting called “Fill Color”, which defines the background color.

Graphical user interface, application

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In this example, I will update the data cell background color to a light blue.

Graphical user interface, text, application

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The data cells are now a light blue.

The same can be accomplished for the row and column headers, giving complete control over the colors in your PAW view.

Workday Adaptive Planning Tips & Tricks: Utilizing Split Rows in Modeled Sheets

August 3, 2022 by Dillon Rossman Leave a Comment

Do you know how to utilize splits in Workday Adaptive Planning for a modeled sheet? Splits allow you to have multiple lines as part of one record and you can set splits on a column-by-column basis.

A use case might be a personnel model in which you want the ability to allocate a single employee to multiple departments. To turn on splits, navigate to the settings of your modeled sheet and click “Columns and Levels.”

From here, click on the “Sheet Properties” button

Within the pop-up menu, click on “Settings” then enable “Allow Splits” and hit “OK”

Once this is completed, you will notice each column now has a checkbox for “Split.” In this example we will turn this on for the “Department” and “Allocation” columns.

Within our sheet we have an existing row for John Smith. In order to create split rows we just have to right-click on John Smith’s row and select “Split Row.”

Once the split row is added you will see that only the two columns we designated with splits are split. The information from the consolidated row gets carried down to the split rows for the non-split columns.

In this example I will create two split rows. I’d like to allocate John Smith to two departments. After adding a second two split row, updating the information, and saving the sheet, you will now see two split rows that are each allocated 50% to their department and a consolidated row that totals up to a 100% allocation.

You could have accomplished the same end result with multiple independent rows, however, splits provide several benefits including:

Non-split columns will automatically copy the consolidated row data to the split rows.
Split rows are grouped together.
Groupings show the summations of split column values, in this example you can see the allocation percentages add up to 100%. Independent rows would not clearly show you an employee is allocated 100%.

Modern Accounting: Four Key Ways AR Automations Propel Financial Operations

July 28, 2022 by Revelwood Leave a Comment

This is a guest blog post from our partner BlackLine, explaining four ways AR automation moves financial operations forward.

Due to challenges in recent years, there’s been a shift in the way companies approach people retention—with varying outcomes.

Many organizations now offer hybrid working policies, with employees enjoying more flexibility throughout their weeks, even if it’s just the ability to do laundry at lunchtime.

On the flip side, the uncertainty and disruption has caused others to become fed up, leading them to move on to new pastures. We’re all aware of The Great Resignation—but what does this mean for AR and finance teams?

Time-consuming manual processes are a significant factor in this fight. With employees struggling to hit targets and respond to customers on time, plus battling siloed systems that don’t provide full visibility into business procedures, it’s easy to see why they’re cutting loose.

It’s clear that to retain staff and streamline operational processes, digital transformation is no longer a nice-to-have—it’s a must-have.

Banish Back-Office Blues with AR Automation

AR automation raises the bar in business performance.

By moving AR to a different beat, businesses can make small changes to their every day that triggers a big change their operational success. Not only that but automating AR can inform more strategic decision-making and drive better financial outcomes—a win-win for both people and business.

It’s time to MOVE on from manual:

M—making better decisions

O—operational success

V—visibility into the future

E—employee satisfaction

And AR is for automating.

1. Making Better Decisions

Let’s be honest: most manual AR practices don’t lead to effective data utilization. And few companies have the necessary tools to make best use of their available data, or action the insights it gives them.

AR automation can fill this gap. By surfacing critical information that is typically difficult to obtain, finance leaders can improve strategic decision making across all areas of business.

This leads to better business outcomes all around, as well as helping you to identify potential growth areas within your existing customer base.

2. Operational Success

Unnecessary process errors. Duplicated effort. Customer disputes. These are just some of the AR challenges your staff are tasked with that can have a serious company-wide impact.

Automating repetitive tasks results in less complications to deal with. Teams can more promptly resolve customer disputes, building better relationships and elevating business reliability and reputation.

On top of this, teams are not only better placed to hit their targets but are also able to dedicate more of their time and energy into work that really makes a difference.

3. Visibility Into the Future

Senior board members are tasked with, among other things, keeping external shareholders happy. They’re (understandably) mostly concerned about revenue, and that is directly informed by a healthy cash flow.

AR automation gives you full insight into your cash position, providing you with everything you need to deliver detailed reporting to shareholders.

Not only could this help secure future investment, but it also contributes towards financial resilience. The more you know about your cash position, the more informed decisions you can make to protect your business.

4. Employee Satisfaction

While WFH has generally gone down a storm, hybrid working can throw up just as many pitfalls as perks. With staff split between home and office, siloed teams may not have full visibility over entire processes, damaging collaboration and significantly hampering productivity.

By implementing AR automation that takes care of admin under one unified platform, staff can take care of adding value elsewhere, putting their expertise to best use: achieving financial goals.

Plus, with staff feeling happier and more supported, they’re less likely to become another ‘Great Resignation’ statistic—and you won’t lose out on all the best talent.

By moving to a different beat with BlackLine, you’re realizing the true potential of AR: as an integral back-office function that contributes significantly to business success.

This blog post was originally published on the BlackLine blog.

IBM Planning Analytics Tips & Tricks: Excel DELET Function

July 26, 2022 by Lee Lazarow Leave a Comment

A while back I wrote a blog about the SCAN function which showed how you can search for specific characters and then combine this with the SUBST formula to create new sets of text. But what if you wanted an easier way to simply skip some characters within the string? This can be done with the DELET function.

The DELET function is used to delete a set of characters from within a string. The syntax of the command is:

DELET (string, start, number)

String = the source text string
Start = the character where deletion will begin
Number = the number of characters to delete

For example:

DELETE (‘phone’, 2, 3) returns ‘pe’

This function can be used to perform tasks such as removing dashes in between an element code number and name or removing a prefix from a list of elements. This will simplify your code by allowing you to simply ignore some text instead of merging two substrings together.

Workday Adaptive Planning Tips & Tricks: Data Integration and the Excel Spreadsheet Data Source

July 20, 2022 by Marc Assenza Leave a Comment

Did you know that Workday Adaptive Planning can use Microsoft Excel Workbooks as Data Sources for Data Integration?

It’s true! The process is surprisingly simple if a few basic rules and steps are followed:

Your column names, positions, and formatting should remain consistent once you decide upon the layout. In the example below, Period, Value, Account and Level will always be in the same order with the same consistent formatting on a moving forward basis.

The name of your worksheet within the workbook will need to remain the same. Within the Workday Adaptive integration, the worksheet name becomes the table name in the Design Integrations task pane. As a side note, if you have multiple worksheets as part of a workbook, each worksheet becomes an available table to use for that spreadsheet data source. See screenshot below:

ALL row and column values must be exactly that, values. There cannot be any formulas or summed totals on the spreadsheet

Import your Spreadsheet data source through the easy-to-use Actions Pane link named “Import Spreadsheet.”

Follow the automated prompting.

Ensure your workbook was uploaded by viewing it in the Data Sources data pane.

Open your Data Source and locate your table from the Data Components Pane.

Drag your table into the Staging area to review and query the data.

That’s all it takes to import an Excel Workbook as an Excel Spreadsheet Data Source. Be on the lookout for more Workday Adaptive Data Integration tips and tricks from me in the future!