Calculations

Calculations in JustPerform are performed through Business rules, which are parameter-driven functions within models for calculating in support of common planning & accounting activities.

With logic, you define formulas that perform calculations on data for field members & model.

Calculations are driven using standard framework on logic engine driven through.

• Business Rules − business user-driven Interface to setup parameters that drive different business rule calculations that cater to standard business requirements in FP&A processes. Target for common tasks for business planning & consolidation required functions.

• Value Driver Tree - Value Driver Tree is a visual business-oriented designer for calculations. This includes the formulas which are used to perform different planning calculations using basic mathematical functions as well as advanced functions on the members, fields, and model data.

Purpose

Any business process is a set of activities. Each activity consists of a group of actions required to be performed to achieve a particular business objective. Business rules are the functions that are defined for calculating and posting the computed financial values in support of the planning & consolidation activities to generate results as per rules driver by GAAP or FP&A processes

Overview

The business rules on the platform are navigated under Drive menu of the space explorer. User can create, edit and maintain the different types of business rules.

Note - ALM Spaces has different calculation rules from JustPerform space set of business rules.

Rule Types

Carry Forward

Business rule to help move the closing balances of previous year to current period.

After uploading the Entity financials (such as Income statement and Balance sheet), for the system to have the rule to carry forward the last year's closing balances to the current year opening balance for the data preparation of the balance sheet data for consolidation, this rule can be used for setup.

The carry-forward rule populates the opening balances for the current year with the closing balances of the prior year's last period.

Account Reclassification

Account Reclassification rule configuration helps define the rules that will reclassify the balances from one source dataset to the target dataset.

Dataset referring can be as simple as from one source account to another target Or as complex as combination of field members like reclass account/flow/entity etc., to target combination and the system will autogenerate the mapping rules.

Currency Conversion

Currency conversion is converting the entity data from its respective local currency/functional currency to other reporting currencies or group currency for group reporting or consolidation purposes.

For consolidation, this helps in ensuring all the entities from different local/functional currencies are converted to common group currency for management reporting. Once converted to group currency, applying the consolidation rules and reporting would be feasible.

Intercompany Elimination (A)

Intercompany Elimination rule configuration helps users define the Intercompany matching rules. One of the key activities for Group consolidation would be Intercompany elimination, so the system should support

• Transactions within different companies within a group need to be reconciled & reported

• These transaction should be eliminated at the group/subgroup

• For any differences between these transactions, the system will autogenerate & post the Offset values to offset account defined.

• All these can be set to defined fields as per business requirement.

Method

Eliminates transactions such as sale of goods or services from one entity with other entities within group/subgroup. This means that the related revenues and cost of goods sold, and profits are all eliminated. There could be P&L transactions as well as offsetting interest expense and interest income being paid and received between entities within the group. How the elimination entry is posted based on the Method of elimination as explained:

1. Seller – By defining an intercompany elimination method as seller, it is assumed seller-side transaction is correct value. Hence on eliminating seller and buyer transactions any difference between amount booked by seller and buyer is posted to buyer side.

2. Buyer - By defining an intercompany elimination method as Buyer, it is assumed buyer side transaction is correct value. Hence on eliminating seller and buyer transactions any difference between amount booked by seller and buyer is posted to seller side.

3. Offset – In case of Offset, neither Seller or Buyer amounts are given any priority and the difference between Buyer and Seller transactions is posted to separate offset account.

4. Relationship

   1. Offset Method

      1. Seller data is filtered and

         1. multiplied with Elimination factor * -1 based on Entity and Interco relationship and posted to Seller Account

         2. multiplied with Elimination factor * +1 based on Entity and Interco relationship and posted to Offset Account

      2. Buyer data is filtered and

         1. multiplied with Elimination factor * -1 based on Entity and Interco relationship and posted to Buyer Account

         2. multiplied with Elimination factor * +1 based on Entity and Interco relationship and posted to Offset Account

   2. Seller Method

      1. Seller data is filtered and

         1. multiplied with Elimination factor * -1 based on Entity and Interco relationship and posted to seller Account

         2. multiplied with Elimination factor * +1 based on Entity and Interco relationship and posted to buyer Account

   3. Buyer Method

      1. Buyer data is filtered and

         1. multiplied with Elimination factor * -1 based on Entity and Interco relationship and posted to buyer Account

         2. multiplied with Elimination factor * +1 based on Entity and Interco relationship and posted to Seller Account

Automatic Journal

Automatic journals are system defined journals posting, based on the consolidation elimination rules defined as per the Ownership structure like for subsidiaries & Associates etc.

Necessary postings are generated & posted for each execution of automatic journal rules execution. Automatic journals will filter input data when applicable to and relationship conditions are met:

• Rules refer to Consolidation, Ownership model with relationship between entities that transactions are posted against, when consolidated at group/subgroup level.

• Apply Formula

• Post Debit and Credit Entries to:

  1. Consolidation Model - existing data is updated

  2. Journal table - existing data is updated

  3. Audit table - Only delta records are posted

Allocation

• Allocation engine is the most simplified & powerful rule engine for setting up complex allocation rules within the platform

• the rule setup is business user-focused, easy to manage with flexibility & scalability.

• Allocation helps in redistributing the source dataset values to single/multiple datasets based on driver values that will decide how the values are allocated.

• Typical use cases are shared cost allocation, Admin/marketing expenses allocation, product costing, profitability & cost analysis, cost distribution & management reporting.

Account Mapping

• Account mapping helps in transformation or Copying the source dataset values to target

• Beneficial of moving multiple datasets, aggregating them & copying to One target dataset

• Used primarily for simple cases like copying data to advanced cases of building the indirect cash flow from PL & BS.