Aligning Capital Planning with XP&A Processes

Amid the uncertain economic environment that persists today, Finance Transformation is critical for organizations relying on the impact of capital investment decisions to fuel their growth. Why? Because at large, complex organizations, effectively managing capital planning is one of the most challenging roles across Finance.

Finance teams require agility to model and analyze individual capital projects, assess risk and make recommendations. Finance teams also need the flexibility to aggregate individual projects into groups of capital projects, such as growth capital or productivity-related capital. And of course, Finance teams must understand how all capital spending impacts the P&L, balance sheet and cash flow.

How are Finance leaders conquering these complexities?

Enabling eXtended Planning and Analysis

Many Finance teams are evolving beyond the purview of traditional FP&A and beginning to embrace what Gartner has coined eXtended Planning and Analysis (XP&A). Finance teams are integrating operational and financial planning for all areas of the organization, such as Sales, Marketing, IT and Supply Chain. And to support more effective planning, budgeting and forecasting, Finance teams are relying on intelligent corporate performance management (CPM) solutions.

Effective capital planning is also critical for success with XP&A. Why? Well, capital planning executed with fragmented spreadsheets and connected point solutions forces Finance teams to waste time and resources on managing data. Such waste limits the Finance team’s ability to engage with business units and conduct strategic dialogue to understand the opportunities and risks related to important capital investment decisions.

Lead at Speed with OneStream Capital Planning

– OneStream’s Intelligent Finance Platform empowers Finance teams to lead at speed by unifying capital planning with core CPM processes – such as planning, budgeting and forecasting; financial consolidation; reporting; and financial data quality – in a single, unified platform. The OneStream MarketPlace provides more than 50 business and productivity solutions customers can download, configure and deploy to address additional requirements quickly, without adding complexity to the application. Here are just a few of the key capabilities of the Capital Planning solution from the OneStream Marketplace:

• Add new projects or assets and manage existing fixed assets. Update with asset class, useful life assumptions and other global drivers.
• Import existing assets and accumulated depreciation expense from leading ERP systems directly into OneStream Capital Planning.
• Dynamically calculate maintenance, insurance and depreciation by asset class for P&L and balance sheet impact.
• Integrate with other OneStream specialty planning solutions, including Cash Planning.
• Efficiently manage all capital planning with simple end-user workflows.

Addressing the Challenge: Van Oord Project & Equipment Forecasting

Van Oord operates with a complex structure that is constantly changing and increasingly disruptive. With Van Oord having a Finance staff of around 250 people, 200 reporting entities and, on average, 300 active projects across more than 50 countries, the sheer volume of data to manage was a challenge.

Van Oord wanted to transform its Finance function to become leaner, more agile and future-proof to adapt to the constantly changing environment. The company needed a solution that would easily integrate financial accounting, project cost control, project reporting and equipment reporting into a single, unified platform.
With OneStream as the driver fueling the Finance Transformation at Van Oord, the company has achieved benefits from having one unified data model within a single application. OneStream is a modern CPM solution that standardizes and automates critical Finance processes, ensuring a fast close and reliable management information. Project, equipment and department details are fully integrated and available for “slicing and dicing.”

Learn More

To learn more about how OneStream empowers Finance teams to lead at speed with the OneStream Capital Planning Marketplace solution access the interactive solution brief titled “Conquering Complexity in Capital Planning”. And if you’re ready to break the status quo and unleash your own Finance team, contact us today to get started!