Gross Margin Actuals Process… broken down
07.11.2019 | Author: Ilse Melotte
Customers ask us how the different NrgFin modules fit together and how the full gross margin actuals process can be automated. Here is the answer in one picture:
The modules Revenue Assurance (RA) and Portfolio Management (PM) check amongst other elements the correctness and completeness of the customer portfolio, its master data and issued bills.
Based on these operational insights Revenue Recognition (RR) and Cost Recognition (CR) have a relative symmetric set up as the underlying data model is organized around the “Customer”. Required analytical data is collected from multiple sources:
- Energy market systems
- Customer Relatiosnship Management systems
- Enterprise Resource Planning systems
- Accounting systems
The module Gross Margin (GM) provides a full view on the Company > Segment > Customer Profitability, but dynamics in the Direct Margin (DM) and Indirect Margin (IM) are rather different which leads to separate and in-depth root cause analyses.
Every energy accountant knows that so far this is only P&L, the clue is getting it right in the financial books and having a perfect financial reconciliation with the balance sheet provisions. Not easy in energy as the market takes years to settle all energy volumes between customers and market parties. Therefore the modules supporting the Actuals Process provide an intermediate view on the settlement statuses per energy stream in relation to one customer, contract or European Article Number. Imbalance Accounting (IA) principles assure correct presentation of all customer related assets and liabilities at a specific moment in time.
Within the NrgFin Product Catalogue, all actuals related functionalities are situated in the EB InsightsTM domain: Controlling and Accounting Insights.