How to bring real-time analytics on SAP BPC?

How to bring real-time analytics on SAP BPC?

Bringing real-time analytics on your SAP BPC using SAP Analytics Cloud live connections.

More and more often, we are witnessing how business is adopting real-time analytics as a means to quickly obtain data insights that allows to make changes and act on critical decisions while pursuing the “single source of truth” principle.

When talking about real-time analytics, we talk about virtualization and live data connections. Following are some of the benefits of live connections:

  • Transaction data is not loaded and will not leave the company network.
  • Data is not replicated
  • SAC can connect to a cloud or on-premise application.
  • Authorizations are used from the backend.
  • How does SAP Analytics Cloud embrace live data connections:

Much has been discussed about SAP Analytics Cloud as a best of breed application in modern analytics, bringing powerful visualization and latest technology functionalities as predictive analytics, while providing strong integration capabilities.

In terms of integration using live data connections, SAP Analytics cloud provides live data connections with SAP HANA, SAP BW and S/4HANA on-premise systems. Regarding SAP BPC on the different SAP BW versions, currently, SAP Analytics Cloud provides live data connection to embedded models only.

Unfortunately, this functionality is not available for BPC standard models, and it is unclear when and if SAP will address this limitation.

However, it is possible to use writeback connections on BPC (allowing hybrid planning scenarios as described in this post). Although it is limited to use with periodic models and data preparation for analysis and data blending from different sources is not supported.

This leaves SAP BPC standard applications, usually containing multiple models (p.e. planning, forecasting, etc.), especially group financial closing and statutory reporting models – traditionally set on a YTD model -, without real-time / live connection capabilities.

How to create a live data connection from a BPC Model?

SAP BPC was integrated into BW architecture from version 7.5. Therefore, most BPC applications are using BW objects underneath, including composite providers on top of the cubes. BW queries (former BEx queries) are built on top of composite providers and can provide the access point for live connections that BPC is currently missing.

A distinctive feature for a composite provider is its ability to combine multiple sources, including HANA views, into one virtual data model layer. It allows for preparing the data for analytics and blend different sources of our BPC models – or not BPC sources – to a single analytics model. Furthermore, with the use of BW queries on top of the composite providers, it allows for applying business logic to the data.

With a simple virtual modeling layer on BW, using composite provider and queries, we can obtain the desired real-time analytics on top of the BPC models. (Beware that measures and member formulas need to be redesigned and replicated on BW modeling).

Unfortunately, many visualization features on SAP Analytics Cloud are only available when using a BW or SAC native time characteristic. Although BPC standard models were migrated to BW, the time dimension is still not a native BW time characteristic, and it would not be possible to generate trend diagrams, waterfall diagrams, and more functions on the standard bar char, nor use the predictive forecasting functionalities. Fortunately, we have a solution to this limitation.

So, how to bring full analytics capabilities to a live connection from BPC Models?

By using associations on the composite provider, we can virtually map a BPC Time dimension to a native time characteristic through a property. This way, the output will have a dimension 0CALCMONTH instead of the text-based BPC Time dimension. Virtual modeling with composite provider and BW provides multiple options to prepare your model for analytics. Now is time to plug your live model in SAC and play!

Webinar calendar

CPMview has a lot of knowledge and experience in the field of Corporate Performance Management. We are happy to share this knowledge and experience with you.
In addition to our blogs and training courses, we regularly offer webinars to give you more insight into recent CPM topics and solutions. In the overview below you will find our current offer. New webinars are offered regularly, so keep an eye on our website and sign up!

To the webinar calendar >>

ESGeo | Intelligent Sustainability Reporting

| 5 minutes read |

The external need for more transparency, comparability and sustainability has led to an increase in reports that periodically need to be produced by corporate or group reporting departments. Integrating reporting (IR), Sustainability Reporting, the Global Reporting Initiative  (GRI), ESG-criteria, they all demand data that differs from traditional information that is in its nature more quantitative oriented and based on financial-, production- or intellectual capital.

KPI reporting as part of P&C cycle

Reporting on KPI’s like carbon footprint, water usage, labor circumstances of employees of suppliers in foreign countries can make finance professionals nervous. They are not yet comfortable with the origin and interpretation of this kind of data. Is the statement of a supplier reliable when they state that they work climate-neutral, while knowing that the production facility used is outdated?

To become more comfortable with this kind of data we need to incorporate it in our reporting calendar as soon as possible and just start working with it. It is to be expected that the obligation, the amount of detail and KPI’s will increase in the coming years. Although a lot of companies have incorporated this kind of information in their annual reports it is still not, for most companies, a part of their periodic reporting cycle.

How can modern technology help?

Except for not being comfortable with this kind of data it is also an enormous job for large organizations with many reporting entities and stakeholders to collect and interpret the data. So there is a real need  for automation. CPM tooling can be used but does not deliver the key solutions for collecting the qualitative information and may even be more expensive when new licenses are needed. There are also multiple reporting standards in the world for sustainability but GRI seems to become more and more the standard. And standards are needed for making reporting on sustainability transparent and comparable.

Modern technologies like ESGEO powered by Sturnis365 can deliver business value by addressing all mentioned challenges.

The ESGEO cloud solution allows any organization to:

  • Define, budget and monitor ESG KPIs, increasing engagement from middle management
  • Reduce risk of controversies by outlining the organizational chain of responsibilities over ESG factors
  • Strengthen the sustainability reporting process, including the final annual statement
  • Remain up to date and compliant with changing regulatory requirements

With the combination of ESGEO and Sturnis365 any organization can make a valuable business case to automate, streamline and simplify financial, internal and sustainability reporting and disclosures while saving on costs.

Selecting the right tool for the ESEF implementation (3)

| Blog 3 of 3 | 5 minutes read |

Everything you need to know about ESEF

From now on, all companies with securities in the European Union and the UK will have to publish their annual financial report in digital form in accordance with the new guidelines of the European Securities and Markets Authority (ESMA). ESMA has developed a ‘European Single Electronic Format’ (ESEF) for this purpose. What does this mean for your organization?

In our previous blog we discussed the impact of ESEF for organizations. We explained the need for a dedicated project when implementing ESEF. One of the most important tasks for the project team is the selection of adequate software tooling. In this blog we therefore address the following question:

What to look for in an appropriate software solution for ESEF?

In answer to this question we have worked out two scenarios. The first scenario deals with meeting the  minimum requirements of ESEF only. You might however face more challenges when disclosing financial reports or other corporate disclosures like sustainability reporting. The ESEF mandate then can serve as a trigger to further improve these processes. In the second scenario we therefore take a broader perspective by discussing the benefits of implementing a comprehensive disclosure management solution.

Scenario 1: Meeting ESEF minimum requirements: use a point solution

The main requirements for ESEF are:

  • Publish the annual financial report in XHTML format;
  • Apply inline XBRL (iXBRL) for all consolidated IFRS Financial Statements.

In order to fulfill these requirements, appropriate software is needed. Since iXBRL and XHML are strongly intertwined with each other, software vendors provide solutions that are capable for performing both tasks in one solution.

We call these solutions a point solution because the software tool is focused only on delivering these iXBRL and XHTML specific tasks. The benefit of a point solution is that it is often a low effort to implement it. A disadvantage is that it is an additional tool in your software landscape. The solution then might become loosely coupled (not fully integrated) to your existing group reporting tools and workflows. This lowers the efficiency and the quality of the reporting process as a whole.

It is therefore beneficial to have a broader view. There are modern solutions on the market which cover the full picture of disclosure reporting requirements, including the most recent legal filing requirements like ESEF.

Scenario 2: Harmonizing all disclosure processes at once: use a Disclosure Management solution

Apart from the ESEF requirements, you might already face other challenges when creating external financial reports. For instance, you can think about:

  • Attaining data quality and consistency among disclosed documents;
  • Formatting and maintaining brand standards among disclosed documents;
  • Creating the disclosed documents on time;
  • High costs associated with the disclosure of reports;
  • Multiple international filling requirements that differ based on country regulations.

In that case you should consider to enhance your disclosure management processes and software solutions. The new ESEF requirements can function as an enabler to improve these disclosure processes coherently.

Current modern disclosure management software solutions streamline the reporting cycle by automating the collaborative financial process to a large extent. These tools directly plug in to your financial/consolidation system and are fully integrated with the Microsoft Office Suite. Besides offering capabilities for extensive workflow management and version control, the main advantage is that these tools automatically generate and update disclosure reports in multiple output formats (pdf, HTML, XHTML, Powerpoint, and more) with a single click. And it ensures even that the look-and-feel for all the different output formats is exactly the same!

It is really worth to reconsider your current disclosure management software landscape if it is not yet supporting for all filing requirements, like ESEF. Implementing a modern disclosure management solution will make the external reporting process far more efficient, less costly and prevents a lot of frustration often seen when reporting figures are not harmonized with each other.

How does CPMview helps organizations?

CPMview helps organizations to meet the ESEF mandate. We therefore help organizations to select and implement the appropriate software tool(s) for ESEF. We have  knowledge from ESEF point solutions in the market and we have a broad experience with implementing Disclosure Management solutions.

Thank you for reading this blog. If you want to know more about this topic or in case you have questions about our services related to ESEF and software implementations for ESEF, feel free to contact us.

CPMview becomes latest Sturnis365 Software Distribution Partner

CPM specialist and Sturnis365 bring deep domain expertise and extensive implementation experience to Corporate Disclosure Management (CDM)

Sturnis365 today announced a strategic partnership with CPMview to transform Corporate Disclosure Management (CDM) processes for sophisticated organizations around the globe. This new partnership will provide industry-leading software and implementation expertise while driving efficiency for all Corporate Disclosure Management processes.

Sturnis365 extends the familiar Microsoft Office platform to support consolidation, collaborative data entry and disclosure processes ensuring high adoption and efficiency.

Our SAAS solution allows for continuous change & flexible consolidation and reporting structures and applies Inversed Design for automatic data and meta-data synchronization to reduce document setup and maintenance. With Sturnis365, published content and numbers can be trusted and the reporting of consolidated numbers and text becomes as easy as creating a Word or Excel document.

Edwin van den Broek, Managing and Founding partner of CPMview comments: “It is our mission to unify, modernize and automate Finance and Analytics using innovative technologies from record to decision-making. Sturnis365 offers a modern SAAS solution for all domains within Corporate Disclosure Management including iXBRL ESEF compliant tagging. We are excited to announce our partnership with Sturnis365. CPMview and Sturnis365 share a strong commitment to provide value added solutions that enable customer success.”

“We are excited to announce our partnership with CPMview and strengthen our presence within the Dutch and Belgium market place,” said Didier Katz, VP International of Sturnis365. “Each Sturnis365 partner is carefully selected based on the amount of expertise, market presence and future vision. We believe that a strategic partnership with CPMview is ideal for the evolving needs of our customers that seeks new technologies for efficient, flexible and lower cost in relation to Corporate Disclosure Management.”

CPMview is a specialist in corporate performance management (CPM). We advise, implement and supervise CPM projects. Our services help to unify, modernize and automate finance and analytics using innovative technologies on all reporting steps from ‘record-to-close’, ‘consolidate-to-disclose’, ‘plan-to-act’ and ‘insight-to-decide’. With our distinctive broad range of services, we ensure that you can optimize the entire finance process with one party.

SAP BPC Maintenance Windows extended


Recently SAP has announced that the maintenance windows of SAP BPC products will be extended, giving customers more time for migration or upgrading. These are the new maintenance windows:

  1. The maintenance of SAP BPC, version for Microsoft 10.1 will continue until end of 2024;
  2. The maintenance of SAP BPC, version for NetWeaver 10.1 will continue until end of 2027;
  3. The maintenance of SAP BPC, add-on for S/4HANA will continue until end of 2027;
  4. The maintenance of SAP BPC, version for BW/4HANA 11.1 will continue until end of 2027;

The new extended windows provide some extra time, but we do not recommend to postpone taking action on BPC too long, especially when working on an older version. As the product is in ‘maintenance mode’, no (major) investments are made in the further development of the software, especially the NetWeaver and Microsoft versions. For BPC Microsoft clients, the lack of priority-one support could also be a trigger to start planning ahead. So, what do we recommend?

Please find our recommendations per version below for the Microsoft and Netweaver versions. As the S/4HANA version is less common and more integrated into the ERP platform, the upgrade advice is more tailor-made. In any case, please contact us for the best advice for your organization.

Advice for clients running SAP BPC 10.x for Microsoft

For clients running BPC on the Microsoft platform, we recommend to start orientating on next steps. Although the support is extended, the platform support for new versions of Windows Server and Office versions can, in the long term, not be guaranteed. This limits your IT organization to keep the infrastructure up-to-date, leading to possible security, compliance and integrity issues. As priority-one support is not available, the reporting continuity and security can be at risk.

We advise clients running BPC on Microsoft to start planning an upgrade to BPC 11.1 on BW/4HANA or migration to another tool. The reason is that support is limited. Especially for clients who like to extend their BPC implementation with new functionality, we advise building new features directly in a new environment. Using this approach, (double) expenses in-migration of new functionality to a new tool can be avoided by taking the big step immediately.

The best direction depends on the client’s situation. An upgrade to SAP BPC 11.1 on BW/4HANA is a sensible approach for all clients, possibly combined with using SAP Analytics Cloud for visualization, augmented analysis (AI, ML) and dynamic forecasting solutions. The upgrade leverages the investments made in the past and provides a robust, proven solution for the coming seven-plus years.

For clients who are not running a SAP landscape, it might be worthwhile also to consider looking at best-of-breed CPM solution. Multiple best-of-breed CPM solutions are in the market, which can support many CPM processes from consolidation to forecasting and reporting. A package selection can help to evaluate which solutions best fit the needs. Feel free to contact us to organize or support such processes.

Advice for clients running SAP BPC 10.1 for Netweaver

When running a NetWeaver version on SAP BPC, the effort to upgrade can vary depending on the scale of the Netweaver/BW platform on which the BPC implementation was build.  In case the system is only used for BPC, the upgrades time and budget can be limited. And, if Netweaver is running on a traditional database, the performance benefits of the newest BPC 11.1 on BW4/HANA can be considerable.

Especially when running Netweaver on a traditional database, we advise upgrading to the newest platform. For a limited upgrade effort (depending on the Netweaver/BW implementation), a significant performance boost is reached, while maintaining the investments in BPC made in the past. Later on, a step for Group Reporting and SAP Analytics Cloud can be considered. SAP Analytics Cloud will also be a great extension for both visualization and business-owned planning and forecasting implementations.


The extended maintenance is giving organizations extra time. However, especially for BPC for Microsoft clients, it is obvious where the road leads. We recommend not to use the spare time to wait and postpone, but use the time for a decent package selection and migration. This ensures all future investments in adding new functionality are not lost when the inevitable step has to be taken anyway. Please contact us to discuss your organization’s landscape so that we can advise on the best next steps.

Cash flow and liquidity planning (2)

| Blog 2 of 2 | 3 minutes read |

The way forward in times of uncertainty!

In our previous blog we have told you about the necessity of cash flow and liquidity planning in times of economic fluctuations and the different types of planning used in determining liquidity positions. In this blog we will further dive into this topic by showing you how cash and liquidity planning can be realized.  

Some companies have relatively predictable cash flows so they can forecast easily for a whole year or even further. Other companies have complex legal and managerial structures with a lot of different operating and holding companies and millions of in- and outgoing cash flows on a daily basis. For those companies it is already a challenge just to have the correct data available. If you add the different local transaction systems and exceldriven sources of information, realizing an accurate cash flow forecast or liquidity plan becomes challenging and time-consuming. 

Times of economic fluctuations ask for quick analysis and action-takingModern Corporate Performance Management (CPM) solutions in modern and integrated tooling like SAP Analytics Cloud (SAC) and OneStream XF support your business in timely decision-makingOur solutions are developed to help organizations with the automation of manual processes and by capturing data in one database (‘one-version-of-the-truth’).  

In this blog, we will describe our solution developed for SAP Analytics Cloud (SAC). 

Solution in SAP Analytics Cloud

To realize an accurate, reliable and agile liquidity plan we have combined the steps of liquidity planning as explained in our previous blog. The liquidity plan and cash flow planning have been integrated into one clear workflow. The core of our solution is to combine existing data, like the realized profit and loss and balance sheet and our predefined automatic calculations, called data actions. These data actions will calculate the impact of your adjustments on the resulting cash flow and liquidity positions.  

Cash flow forecast

We start with the cash flow forecast. The first step is to specify the planned investments for the coming period. Once entered, SAC automatically calculates the effects on our cash position by determining the depreciation and cash outflows.  

After planning your CAPEX projects, it’s time to plan expected profit and loss. We can use SAC to take your current P&L and create a scenario for the nearby future. The next step in our solution is to correct for intercompany receivables and payables. After adjusting these positions, the other P&L items can be adjusted for future developments. This can be done manually, for example using the top down input possibility of SAC, or by using one of SAC’s advanced planning functionalities like spreading or automatic allocations. More features in SAC are described in our Budgeting & Forecasting whitepaper. 

After the P&L is planned, a data action calculatethe operational cash flow. This can be checked directly in visualizations provided in the same story. As a last step, when the results are satisfactory, we book the cashflow to the balance sheet to create the positions for cash and cash equivalents. These will be used for the next step in our process, which is the liquidity plan. 

Liquidity planning

Once the regular cash flow for the nearby future is calculated, it is time to determine the liquidity positions. The input from the cash flow process can directly be used to make corrections for the effect on liquidity. In this part of the solution, liquidity can be tested by adjusting the cash flow from operational activities by applying a sensitivity matrix, using both volume and margin effects. Another adjustment that can be made to increase liquidity is to review debit and credit terms. The impact of these corrections can be calculated companywide by the push of a button. 

The next step in the solution in SAC is to adjust the execution and credit terms for the investments planned in the cash flow forecast. These investments are retrieved from the previous steps, after which the effects of different credit terms or timelines can be reviewed.  

The last step is to review the scenario created in the process. The liquidity positions are clearly visualized including cash surplus and eventual shortages. Visualizations are provided to compare the effects of the adjustments to your scenario. By using SAC, the data and enhanced visualizations can easily be updated and shared with stakeholders. By collaborating in one platform, time can be used efficiently, focusing on taking the right and timely decisions. 

Business benefits

CPMview’s integrated cash flow and liquidity planning in SAC offers integrated planning, based on your realized figures and readily available data. In a concise and structured workflow, future cash flows can be easily forecasted. By adjusting drivers and using automatic calculations, effects of changes can be determined quickly and reliably for several scenarios. These adjustments can be shared and analyzed in the same tool, providing direct insight for all stakeholders where action is required to cover the cash outflows.   

This solution supports companies by decreasing cost, by limiting throughput time for data collection, reconciling and validation. Liquidity and cash flow plans can be realized fast, saving time for more value-added activities. 

Are you interested in how our proven solution in SAC works in more detail? Join us in one of our 45 minute interactive webinars on the 12th of May (1) from 9.30 – 10.15 am CET (2) from 16.30 – 17.15 CET.

Machine learning for Finance (2)

| blog 2  of 2| 3 minutes read |

In our last blog ‘’Machine Learning for Finance’’, we explained the difference between AI and ML. We also provided an example about how ML could be used in practice for an investment analysis. In spite of all the advantages of ML, companies struggle to extract the real value from this technology and do not know how to apply this within their organizations. In this blog we want to explain how ML can be used in an organization for a common problem. We will also dive deeper into how ML can be used within the Finance function.

Sales forecasting

In finance and business, a common task is forecasting the sales. This is usually done by a process using Excel spreadsheets that require input from different departments in an organization. This process is very time-consuming and the forecasts are usually based on a gut feeling. This input is not based on business drivers and therefore leads to biasedness. Another problem is that the accuracy can only be measured at the end of the forecasting period by comparing the actuals with the forecast. By doing so, the company has limited effectiveness in steering their business and could have achieved better results only if they had earlier, more accurate, insights.


To solve this problem, ML models can be used to make forecasts that are based upon business drivers. By making use of these drivers the organization could observe patterns and effects, such as trends and seasonality. This gives important and new insights into the numbers by using standard visualizations.

In the ‘old-fashioned’ way of sales forecasting, a company would look at their pipeline and opportunity data and could analyze the corresponding sales figures. When a company uses ML, it has the advantage that the data is presented in a way that could be translated into an action plan. For example, this forecast method will analyze past opportunities and translate this into probabilities for future sales. Companies can use this information to focus forecast sales even when opportunities are not known or expected. By combining internal and external data from multiple sources, additional trends and relations can be discovered to increase forecast possibilities.

Lastly, the accuracy of the model can be analysed immediately by comparing a backward looking forecast with the realized, historical data for past months or years.  By doing so the accuracy of the model is tested for different trends and seasonality. When the accuracy of the model is lower than desirable, we have the option to let the algorithm search for strong business drivers or dynamics.  The company has then the information and gains new insights to shift focus to these new drivers to achieve better results.

The sales forecasting model could be integrated in the financial and business management, by doing so you can make better overall decisions. Without a good idea of  what your sales are going to be, managing your inventory and cashflow becomes almost impossible.


CPMview provides tooling which can help to implement ML in financial reporting and analysis of daily operations. In the next blog we will dive deeper into how this ML model can be implemented into your company. We will explain this process and describe the important steps.

Become ready for the ESEF implementation! (2)

| Blog 2 of 3 | 5 minutes read |

Everything you need to know about ESEF

From now on, all companies with securities in the European Union and the UK will have to publish their annual financial report in digital form in accordance with the new guidelines of the European Securities and Markets Authority (ESMA). ESMA has developed a ‘European Single Electronic Format’ (ESEF) for this purpose. What does this mean for your organization?

In the first blog of this blog serie we pointed out what ESEF is. In this second blog we address the following question:

How to implement ESEF in your organization?

The impact of ESEF – and so the implementation – varies from organization to organization. It is mostly dependent on the complexity of the chart of accounts (its ease of mapping to IFRS) and the way current Disclosure Management software supports for ESEF.

We have however identified one generic approach to implement ESEF. We will introduce it in this blog. But first we start with providing some valuable tips for the ESEF implementation.

Tips for ESEF implementation

Tip 1. Plan for resources

The main requirements of ESEF for companies are twofold. Firstly, companies have to deliver a XHTML version of the annual financial report. Secondly, companies have to include iXBRL tags for all consolidated IFRS Financial Statements.

The implementation of these requirements will consume a significant amount of resources during the first year. To give an idea, you can think about:

  • Software. Software is needed to support for generating the XHTML and to apply the iXBRL tags.
  • People. For instance, members from the finance group department are needed to map the company’s group accounts to the ESEF taxonomy
  • A process-/workflow needs to be defined to ensure the correctness of the report.

Therefore: it’s wise to plan well in advance for the availability of these resources!

Tip 2. Act timely

In order to meet the ESEF requirements on time and in an efficient way, it is important not to underestimate the impact of it. Since the biggest part of the implementation can already be performed well before the annual reporting process for the Fiscal Year 2020 starts, it is recommended to act on time. In this way the ESEF implementation does not overlap with the already busy period during the annual reporting process.

Therefore: it’s wise to act timely and start soon!

Tip 3. Define a project

This tip is strongly related to tip 1 (availability of resources) and tip 2 (start well in advance): define a project for the implementation of ESEF. You’ll need a (small) project team that is dedicated to fulfill the requirements of ESEF and to develop an efficient workflow for it.

The ESEF implementation process

We have identified a generic approach to implement ESEF. It basically defines the main activities to be incorporated in your project plan (see tip 3).

The implementation of ESEF consists of four steps, see the figure below.

Figure 1. ESEF Implementation process

As you can see, the implementation starts with making up a plan (step 1). It is important to familiarize yourself with the ESEF requirements and the ESEF taxonomy. In this way, you are capable to assess the impact of ESEF on your organization. How easy will it be to map your group accounts to the ESEF taxonomy? What is the need for new software tooling?

In step 2 you can already start preparing the mapping and define extensions. You can simply prepare your mapping in your current Group Reporting System or a spreadsheet. The extensions allow for tagging information which is unique about your company, for which there is no available appropriate tag with an equivalent accounting meaning in the ESEF base Taxonomy.

In step 3 you apply the iXBRL-tagging as prepared in step 2 and also link (‘anchor’) extensions to the ESEF-taxonomy elements. In this step you’ll need the software tool as selected in the plan (see step 1).

The final step consists of generating and publishing the report. The XHTML report is being generated by the software tool as selected in the plan. The most time-consuming part is the review of the report format and the validation of the correctness of the figures. After this review, the XHTML report can be sent to the authorities and published.

How does CPMview helps organizations?

CPMview helps organizations to meet the ESEF mandate. We therefore provide organizations the resources and knowledges for executing the four main ESEF implementation steps on time. But we also take it a step further: in the next blog of this blog series we will discuss the need for new software tooling and show how the ESEF mandate can serve as a trigger to further improve your current disclosure management processes.

Thank you for reading this blog. If you want to know more about this topic or in case you have questions about our services related to ESEF, feel free to contact us.

Cash flow and liquidity planning

| Blog 1 of 2 | 3 minutes read |

The way forward in times of great uncertainty! 

In times of increasing uncertainty, it is vital to have information related to future cash and liquidity fast and accurately available. No company can survive or grow without profit, but it can also not survive if it isn’t able to pay its debts on time. This is exactly what a liquidity and cash flow plan do tell. 

To effectively incorporate liquidity planning and cash flow planning is challenging for most companies. Although technology has made major improvements to collect, collaborate and analyze data, the increasefinancial complexity, regulatory requirements, globalization, challenges in integrating data models and processes have significantly increased the complexity for implementing effective liquidity or cash flow reporting processes.   

In this blog we will describe what liquidity and cash flow plans are and how we can help you to implement these plans in your organization. In our following blogs we will focus on business benefits and added value of liquidity and cash flow planning and present examples of liquidity and cash flow planning with proven technologies.  

Different types of planning 

Depending on the type of industry and the way you have organized your operations, financial plans require different granularity levels. Planning horizons and frequencies for creating plans may differ 

In general, every organization should focus on visualizing the following two goals, though: 

  1. Cash balances plus cash surplus or shortage from daily operations. 
  1. Other cash or non-cash sources from investments, short-term and longterm agreements in relation to credit facilities or any other initiative that will have an impact on cash surplus or shortage 

To realize the above-mentioned goals and for the sake of clarity, we use the following definitions. Overall the following plan horizons can be defined:

cash plan (1) is the current amount of cash at banks. Reports show the cash position from operations by bank account, in local currency and per company. The available amount of cash is the starting point for the liquidity plan (2). In this plan the focus is to collect cash and plan for committed and uncommitted short-term credit and financing facilities. When you also consider long-term financing and investment activities, you can derive a cash flow planning (3)Cash flow plans are typically accounting driven due to the fact that these kind of plans incorporate balance sheet and P&L related items (for example EBITDA corrected for interest, taxes, depreciation and amortization). 

Cash and liquidity planning with CPMview

For most companies these planning processes are difficult to integratetime-consuming and errorproneMost companies only perform these reporting processes occasionally. The level of detail is often limited, insufficiently supporting to make the right and timely strategic and operational decisions. That is where we can help! We implement automated and integrated cash and liquidity planning, using proven technologies.  

Based on our in-depth experience with the integration of cash and liquidity processes we can help companies in realizing fast and accurate cash and liquidity plans with proven CPM technologies 


Interested in our proven solution? Sign up for our webinar on the 12th of May.