Rules can be created such that planned assets are converted to purchased assets automatically

Description

In the realm of Corporate Performance Management (CPM), setting automatic rules for capital asset planning is a crucial function. These rules can be created in a way that when certain criteria or triggers are met, the planned assets are automatically added to the plan. This automation streamlines the workflow and reduces manual efforts, leading to a more efficient planning process.

Example Use Case

Scenario: A mid-sized enterprise in the manufacturing industry uses Excel for capital asset planning. They have a large list of planned assets. When they purchase one of those assets, they have to search for it and delete it in Excel and update any related sheets. It takes time and causes errors throughout the model.

Solution: They upgrade to a planning system that is integrated into their CapEx listing in their ERP. When planned items are shows as purchased in the ERP, the system runs a rule that automatically converts that planned asset to a purchased asset. This model update happens automatically with no further action from the users.

Considerations

This is similar to a Workforce Planning model where we need to change a TBH to an actual hire. This need occurs when planning for individual transactions, especially when there will be potentially hundreds of transactions. Constantly reconciling what has been purchased with what has been planned could consume hours per month, and will almost certainly result in errors.

How this is done is dependent on the setup. Will it search for a common key between the planned and purchased? Or will it match a text description of the item? Make sure to discuss the logistics of this with the vendor to make sure it works as expected.

Questions to Ask a Vendor

• Process: If a planned asset becomes an owned asset, can the system automatically delete the planned asset in favor of the purchased asset?
• Customizable Rules: How easy is it to set up and modify the rules for automatic conversion of planned assets to owned assets in your system?
• Integration: Can we automate a data exchange between our source system and the CPM tool?