Version

<h2 id="definition">Definition</h2> <p>In Corporate Performance Management (CPM), a Version refers to a specific iteration or edition of financial plans, budgets, forecasts, or reports that has been created at a particular point in time or under a specific set of assumptions. Versions allow organizations to track changes, compare different planning scenarios, and analyze the evolution of their financial strategy over time. By maintaining different versions of financial documents, corporate finance professionals can effectively monitor performance against plans, assess the impact of strategic decisions, and refine their approaches based on evolving business insights. Versions facilitate a structured approach to financial management, enabling companies to archive historical data, benchmark progress, and support informed decision-making processes.</p> <h2 id="application">Application</h2> <table> <thead> <tr> <th><strong>Financial Process</strong></th> <th><strong>Version Type</strong></th> <th><strong>Purpose</strong></th> </tr> </thead> <tbody> <tr> <td>Budgeting</td> <td>Original vs. Revised Budget</td> <td>To track changes to the budget as new information becomes available</td> </tr> <tr> <td>Forecasting</td> <td>Rolling Forecast Versions</td> <td>To update forecasts based on the latest business conditions</td> </tr> <tr> <td>Reporting</td> <td>Monthly Financial Report Versions</td> <td>To compare actual results against different forecast versions</td> </tr> <tr> <td>Strategic Planning</td> <td>Scenario Planning Versions</td> <td>To evaluate different strategic options and their outcomes</td> </tr> <tr> <td>Performance Measurement</td> <td>Target vs. Actual Versions</td> <td>To assess performance against various targets over time</td> </tr> </tbody> </table> <h2 id="5-important-considerations">5 Important Considerations</h2> <ol> <li><strong>Version Control:</strong> Implement a systematic approach to version control to ensure clarity, prevent confusion, and maintain the integrity of financial data.</li> <li><strong>Documentation:</strong> Document the assumptions, methodologies, and changes made in each version to provide context and facilitate analysis.</li> <li><strong>Accessibility:</strong> Ensure that relevant stakeholders have access to different versions as appropriate, to support collaboration and informed decision-making.</li> <li><strong>Comparison and Analysis:</strong> Utilize software and tools that enable easy comparison between versions to highlight differences and extract insights.</li> <li><strong>Archiving:</strong> Maintain an archive of historical versions for reference, compliance purposes, and to track the evolution of planning and performance over time.</li> </ol>