Values can be entered in a top-down manner with values cascading through the model in a methodology of our choosing

Description

In the context of Corporate Performance Management (CPM) software, top-down value entry refers to the ability to enter values at a higher level (such as All Departments, All Products, etc), which then cascade to lower levels in a predetermined manner.

Example Use Case

Scenario: An enterprise-level retail organization is using CPM software for its budgeting and forecasting. The company operates on a top-down budgeting approach, with the board setting the overall budget, which then gets allocated to various departments and individual stores.

Solution: With the top-down value entry and cascading feature, the board enters the total budget into the model at the top level. The software then automatically distributes this figure to the departments and individual stores based on a pre-set revenue contribution driver. This not only saves time but also ensures consistency in budget allocation.

Considerations

This method allows budgets to be populated with data very quickly. It can be as simple as “We have $1,000,000 for marketing expenses. Split amongst all products, locations, and subsidiaries.” Or it can be linked to some sort of method, drivers being the most common. “We have $1,000,000 for marketing expenses. Split by margin contribution amongst all products.”

This can often be accomplished by a formula or by a pre-set collection of options for the user to choose from based on the specific account.

Questions to Ask a Vendor

• Methodology Flexibility: How customizable is the cascade methodology within your software? Can we set up different methodologies for different departments, products, locations, or combination thereof?
• User Access: Can lower-level users see the details of how values have been cascaded to their level?
• Revision Handling: How does the software handle revisions? If values at the top level are changed, does it automatically adjust the values at lower levels?