“We follow the Global FP&A team process and system for our budgeting process”.

“We use our Global Finance System and follow the global process”?

“We collect the data via excel and then upload in the Global tool for our group budgeting and forecasting?”

These are common responses of the regional finance team when asked about the FP&A process. When asked about whether the process and data is sufficient to analyse and take decisions at regional level, answer is NO.

Need for Defining Regional FP&A Process 

Global Finance Budgeting system implemented by HQ Team target towards collecting the key financial data and certain key operational metrics, but it lacks details for the regional level data analysis and decision making. When the ERP system is catered to localization needs, why the FP&A systems are not localized?

The regional FP&A process and system must be defined independently and one size fits all approach from global team does not work at regional level especially in diverse geographies like ASEAN.

  1. Each country’s consumer behaviour is different and this might be reflected in the products offerings of the business.
  2. Marketing Promotion, Sales Discounts based on occasions varies by country.
  3. Financial reporting standards and regulation compliance varies.
  4. Global Financial FP&A system does not capture the regional specific drivers and parameters that are required for further analysis.

What key factors make the Regional FP&A team not to have their own FP&A systems.

  1. Most regional offices do not have regional IT Support team, so maintenance of these system for Finance professionals become difficult.
  2. Cost is a big factor since regional FP&A team cannot have the budget like Global team.

Function Level Process Definition
Regional FP&A team has to look at areas or functions where they need key drivers’ information for the key decision making. It’s important to have country specific inclusion in their process definition.
What are the areas you as FP&A team could look at?
Get input from the Function Owners at Country/Division level.

  1. Sales Planning Process.
  2. Advertising and Marketing Promotion budget.
  3. Manpower Budget.
  4. Project Budget.

Now comes the question on how to overcome key challenges, IT Support and Cost.

How you could define and implement

Oracle EPM Planning and Budgeting Cloud allow the organizations to set up Global and Regional FP&A process for the decision making. There are organizations who uses Regional or Divisional budgeting process as well as Global Corporate Budgeting process using Oracle EPM Cloud.

How Oracle EPM Planning and Budgeting Cloud could help Regional FP&A team

1) Functional specific process can be designed with flexible data integration methods.

2) Finance managed applications.

3) High Data Security with Oracle Cloud and hence no Server maintenance.

3) Attractive licensing model based on Functions and number of users.

If you would like to know more and how Tibura could help your organization in the FP&A process with Oracle EPM Cloud, reach out to us via LinkedIn or info@tibura.com.

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