Flexible Solution for Building Multiple Predictive Models Based on Sensitivity Analysis
Forecasting is based on the understanding of objective laws. Whether a budget is realistic largely depends on the accuracy of the forecast. Effective market forecasting—including sales, market share, resources, labor, and profit predictions—is a prerequisite for budget preparation.
Take cost forecasting as an example: cost fluctuations are influenced by multiple factors, such as unit purchase price, tariffs, freight, storage fees, labor costs, variable overhead, and fixed overhead. These factors can have direct or indirect impacts on costs. When designing a forecasting model, a layered convolutional calculation must be applied to assess how each factor affects unit cost and total cost. If one or more cost factors change, the resulting metrics will update accordingly.
Integrated R&D, Production, Supply & Investment Solution Based on Planning System
Production Purpose: To meet demand by determining sales volumes based on corporate long-term strategy, annual goals, and market forecasts, then setting production quantities accordingly. Based on production volumes, assess required infrastructure investments and determine raw material procurement using BOM data.
R&D Purpose: To develop new products and technologies, building unique core competitive advantages.
EPM System Benefits: The Intcube EPM System enables flexible data flow (strong/weak correlations) across R&D, production, supply, sales, and investment, creating digital twins for each segment to unlock data value.
Lean Cost Allocation Scheme Based on Proportional Distribution Rules
Modern production leads to common costs, and high-tech advancements further increase their proportion, making them virtually ubiquitous. In a sense, cost allocation resembles internal taxation—it is policy-driven, and different standards may yield varying results. For example, allocating costs based on headcount might incentivize certain departments to minimize hiring. Other standards include actual usage, proportional distribution, and negotiated benchmarks.
The Intcube EPM System follows a structured cost allocation process: identifying cost objects, pooling common costs, selecting allocation standards, and distributing costs to the relevant objects. The cycle—pooling, allocating, re-pooling, and re-allocating—continues until final costs are determined.
Budget Consolidation Solution Based on Various Standards including Management, Equity, and SASAC Reporting
For conglomerate manufacturing enterprises, budgets are typically prepared and consolidated based on management reporting standards. However, some companies also need to produce consolidated budget statements according to the equity structure for external reporting purposes—generating two sets of consolidated data from a single budgeting process. During consolidation, adjustments and eliminations (particularly intercompany transactions and balances) are key focus areas.
To meet diverse group-level requirements, Intcube EPM supports three budget consolidation methods:
▪ Top-down elimination: The holding company directly offsets subsidiary line items via an intermediate elimination sheet.
▪ Manual adjustment entries: Bulk adjustment/elimination entries are manually input, with auto-consolidation by the system.
▪ Collaborative reconciliation: Automated elimination based on workflow-matched intercompany transactions.
Rolling Budget Solution: Precise Execution Control & Future Forecasting
The primary purpose of rolling budgets is forecasting rather than performance evaluation. Based on budget targets, rolling budgets are mainly used for process management, serving as a supplement to effective budget execution and providing a more realistic overview of annual operations.
To ensure controllability and accuracy in budget spending, companies typically release budget targets progressively as business progresses. Rolling budgets follow the "near-precision, far-roughness" principle, usually updated monthly with consideration of the next month's business developments. Most budget items can be managed directly using rolling budget data, while specific expenses strongly tied to revenue may require separate control rules.
A rolling budget consists of actuals from past months and forecasts for future periods. In the Intcube EPM system, actuals are automatically updated via integration with business and financial systems, while forecasts are generated based on manual adjustments to key drivers and built-in rolling rules.
Budget Execution Control Solution Based on Two-Way Integration Function of Execution Control Service Center
Intcube EPM - Comprehensive Budget Management System focuses on closed-loop management, integrating budget formulation, execution, analysis, adjustment, and performance evaluation.
Intcube EPM - Execution Control Service Center enables end-to-end oversight of corporate expenditures, including costs, project expenses, procurement, and payments, covering pre-event, in-process, and post-event controls.
Through bidirectional integration, the Execution Control Service Center provides precise over-budget alerts from third-party systems and feeds execution results back to Intcube EPM’s budget reports, allowing drill-down analysis to trace variances to specific transaction documents.
The center also supports customized control policies for different business processes, combining alerts and approval workflows to ensure proactive monitoring and post-analysis of expenditures.
Ad-hoc Query Solution for Multi-Organization, Multi-Scenario, Multi-Version Comparison from a Budget Management Perspective
Budget managers may need to compare specific versions of budget scenarios—such as actuals vs. budget, annual targets, or prior rolling budget versions—when assessing budget rationality. Predefined templates often fall short for such analyses. With Intcube EPM’s ad-hoc query, they can freely create analytical or input forms, fully meeting financial analysis needs.
This ad-hoc analysis feature can also be extended to department managers for multi-dimensional tracking of budgeted vs. actual expenses under their purview.
Intelligent Graphical Analysis Solution for Business Decision Support
Intcube EPM offers multiple analytical modes, including self-service ad-hoc queries, ledger-style classification summaries, and drill-through execution reports. Integrated with intelligent analytics, it enables diverse visualizations, multidimensional analysis, multi-layer drilling, and proactive alerts.
It provides comprehensive analysis of manufacturing operations—covering operational efficiency, profitability, growth potential, and control capabilities—along with specialized analysis on R&D, production, sales, procurement, operations, and finance.
Additionally, Intcube EPM supports graphical analytical reports, automatically updates budget execution alerts, and allows scheduled exports with email notifications to relevant stakeholders.
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