Method and apparatus providing automated financial plan controls

• US 7,657,471 B1
• Filed: 10/01/2001
• Issued: 02/02/2010
• Est. Priority Date: 10/01/2001
• Status: Active Grant

• Current Assignee: Infor Incorporated
• Original Assignee: Lawson Software Incorporated (Infor Incorporated)
• Inventors: Sankaran, Sarat C., Chandran, Rajesh, Fuloria, Prashant
• Primary Examiner(s): Borlinghaus; Jason M
• Application Number:
  US09/969,134
• Time in Patent Office: 3,046 Days
• Field of Search: 705/30, 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Techniques providing automatic control of a distributed electronic financial plan are disclosed. A set of financial statements is created and populated with planned data values that are stored in a database. In certain embodiments, statements in the set are logically linked to facilitate automatic updating as changes occur. The P&L, balance sheet and statement of cash flow are all automatically configured with certain calculated lines and standard lines that maintain proper accounting relationships among the electronic financial plan documents. Spending lines of the P&L are linked meaningfully to constrain spending plans of the corresponding underlying departments so that the P&L becomes conservative in terms of spending. One or more organizational hierarchies may be created and stored, based on departmental organization or revenue flows, and sets of P&Ls, balance sheets, and statements of cash flows are associated with nodes in these hierarchies. A roll-up statement may be created based on any of the hierarchies, enabling a user to rapidly obtain alternative views of lower-level plan data. The user may also prepare multiple different linked groups of P&Ls, balance sheets, and statements of cash flows to view and evaluate multiple scenarios of financial performance.

Claims

1. A method providing automatic control of a financial plan that is embodied in a set of logically linked electronic forward-looking financial statements, the method comprising the computer-implemented steps of:

creating and storing a plurality of hierarchies, wherein the plurality of hierarchies include a business unit hierarchy and a functional unit hierarchy;

creating and storing an electronic forward-looking profit and loss statement having a plurality of target spending amounts, an electronic forward-looking balance sheet associated with the forward-looking profit and loss statement, and an electronic forward-looking statement of cash flows associated with the forward-looking profit and loss statement and the forward-looking balance sheet;

creating and storing one or more first logical links to link one or more lines of the forward-looking profit and loss statement to one or more corresponding lines of the forward-looking statement of cash flows;

creating and storing one or more second logical links to link one or more lines of the forward-looking profit and loss statement and one or more lines of the forward-looking balance sheet to one or more corresponding lines of the forward-looking statement of cash flows, wherein lines of the forward-looking profit and loss statement correspond to at least one of an underlying organizational spending plan associated with the functional unit hierarchy;

receiving a user input;

associating the user input with a forward-looking statement selected from the group consisting of the forward-looking profit and loss statement, the forward-looking balance sheet and the forward-looking statement of cash flows, wherein associating includes updating the selected forward-looking statement; and

automatically updating the corresponding lines of each of the forward-looking statements associated with the selected forward-looking statement and the plurality of hierarchies;

receiving user input providing one or more updates to the set of financial statements in a private planning environment;

receiving user input requesting to publish the set of financial statements from the private planning environment to a shared planning area; and

publishing the set of electronic financial statements to the shared planning area only when one or more amounts in the set of financial statements being published satisfy one or more constraints in a related set of financial statements.

3. The method of claim 1, further comprising the steps of:

creating and storing a primary organizational hierarchy comprising nodes representing profit centers of an enterprise;

creating and storing the forward-looking profit and loss statement, the related forward-looking balance sheet, and the related forward-looking statement of cash flows associated with each node of the primary organizational hierarchy; and

generating a roll-up set of financial statements for a root node of the primary organizational hierarchy based on financial statements that are associated with child nodes of the primary hierarchy.

4. The method of claim 3, further comprising the steps of:

generating sets of financial statements for any intermediate node of the primary organizational hierarchy based only on financial statements of all child nodes of the intermediate node.

5. The method of claim 3, wherein creating and storing the primary organizational hierarchy comprises creating and storing nodes representing business units and departments in an organization based on geographical contribution to revenue.

6. The method of claim 3, wherein creating and storing the primary organizational hierarchy comprises creating and storing nodes representing products that are related in a family of products.

7. The method of claim 3, wherein creating and storing the primary organizational hierarchy comprises creating and storing nodes representing customers and associated distribution channels through which the customers receive products or services.

8. The method of claim 1, wherein the one or more constraints are satisfied only when each spending amount in the forward-looking profit and loss statement is less than a corresponding target spending amount in a related forward-looking profit and loss statement.

9. The method of claim 1, wherein the one or more constraints are satisfied only when all the income amounts in the forward-looking profit and loss statement are greater than related revenue contribution target amounts in a related forward-looking profit and loss statement.

10. The method of claim 1, further comprising the steps of:

creating and storing one or more alternative sets of electronic financial planning documents, wherein each alternative set comprises a related profit and loss statement, balance sheet, and statement of cash flows, and wherein each alternative set is associated with a financial planning scenario.

11. The method of claim 10, further comprising the steps of:

generating a view of a profit and loss statement of a first alternative set among the one or more alternative sets;

receiving user input selecting a second of the alternative sets; and

automatically generating an updated view of the profit and loss statement based on the selected second alternative set.

12. The method of claim 1, wherein one or more of the first logical links are pre-configured links among related lines prior to receiving the user input.

13. The method of in claim 1, wherein the forward-looking profit and loss statement comprises one or more pre-configured calculated lines and one or more pre-configured standard lines, wherein the one or more pre-configured calculated lines and standard lines are provided prior to receiving the user input, and wherein the step of automatically updating the related lines of a second electronic document comprises the steps of automatically calculating amounts for the related lines based on one or more mathematical relationships associated with the calculated lines and standard lines.

2. A computer-implemented method providing automatic control of a financial plan that is embodied in a set of logically linked electronic forward-looking financial statements, the method comprising:

creating and storing a plurality of hierarchies, wherein the plurality of hierarchies include a business unit hierarchy and a functional unit hierarchy;

creating and storing an electronic forward-looking profit and loss statement having a plurality of target spending amounts, an electronic forward-looking balance sheet associated with the forward-looking profit and loss statement, and an electronic forward-looking statement of cash flows associated with the forward-looking profit and loss statement and the forward-looking balance sheet;

creating and storing one or more first logical links to link one or more lines of the forward-looking profit and loss statement to one or more corresponding lines of the forward-looking statement of cash flows;

creating and storing one or more second logical links to link one or more lines of the forward-looking profit and loss statement and one or more lines of the forward-looking balance sheet to one or more corresponding lines of the forward-looking statement of cash flows, wherein lines of the forward-looking profit and loss statement correspond to at least one of an underlying organizational spending plan associated with the functional unit hierarchy;

receiving a user input;

associating the user input with a forward-looking statement selected from the group consisting of the forward-looking profit and loss statement, the forward-looking balance sheet and the forward-looking statement of cash flows, wherein associating includes updating the selected forward-looking statement;

automatically updating the corresponding lines of each of the forward-looking statements associated with the selected forward-looking statement and the plurality of hierarchies;

creating and storing in a private planning area, one or more forward-looking departmental spending plan statements and one or more third logical links which link one or more lines of the forward-looking profit and loss statement and one or more lines of the forward-looking department spending plan statements;

receiving user input requesting to publish one of the forward-looking department spending plan statements from the private planning area to a shared planning area;

determining whether each entry in the forward-looking department spending plan statements is less than or equal to the corresponding target spending amount in the forward-looking profit and loss statement;

if each entry in the forward-looking department spending plan statements is less than or equal to the corresponding target spending amount in the forward-looking profit and loss statement, publishing the forward-looking department spending plan statements to the shared planning area; and

if at least one entry in the forward-looking department spending plan statements is greater than the corresponding target spending amount in the forward-looking profit and loss statement, restricting the forward-looking department spending plan statements to the private planning area.

14. A computer-readable medium carrying one or more sequences of instructions for providing automatic control of a financial plan that is embodied in an electronic forward-looking plan profit and loss statement that includes at least one planned amount for a future accounting period, which instructions, when executed by one or more processors, cause the one or more processors to carry out the steps of:

creating and storing a plurality of hierarchies, wherein the hierarchy includes a business unit hierarchy and a functional unit hierarchy;

creating and storing an electronic forward-looking balance sheet that is associated with the forward-looking profit and loss statement;

creating and storing an electronic forward-looking plan statement of cash flows that is associated with the forward-looking profit and loss statement;

creating and storing one or more first logical links among one or more lines of the forward-looking profit and loss statement to one or more related lines of the statement of cash flows;

creating and storing one or more second logical links among one or more lines of the forward-looking balance sheet to one or more related lines of the forward-looking statement of cash flows, wherein lines of the forward-looking profit and loss statement correspond to at least one of an underlying organizational spending plan associated with the functional unit hierarchy;

receiving user input providing one or more updates to a first electronic document selected from among the forward-looking profit and loss statement, forward-looking balance sheet or forward-looking statement of cash flows;

automatically updating the corresponding lines of a second electronic document selected from among the forward-looking profit and loss statement, forward-looking balance sheet or forward-looking statement of cash flows according to the first and second logical links and the plurality of hierarchies;

receiving user input providing one or more updates to the set of financial statements in a private planning environment;

receiving user input requesting to publish the set of financial statements from the private planning environment to a shared planning area; and

publishing the set of electronic financial statements to the shared planning area only when one or more amounts in the set of financial statements being published satisfy one or more constraints in a related set of financial statements.

15. An apparatus for providing automatic control of a financial plan that is embodied in an electronic forward-looking profit and loss statement that includes at least one planned amount for a future accounting period, comprising:

means for creating and storing a plurality of hierarchies, wherein the hierarchy includes a business unit hierarchy and a functional unit hierarchy;

means for creating and storing an electronic forward-looking balance sheet that is associated with the forward-looking profit and loss statement having a plurality of target spending amounts;

means for creating and storing an electronic forward-looking statement of cash flows that is associated with the forward-looking profit and loss statement;

means for creating and storing an electronic forward-looking statement of cash flows that is associated with the forward-looking profit and loss statement and the forward-looking balance sheet;

means for creating and storing one or more first logical links to link one or more lines of the forward-looking profit and loss statement to one or more at least one corresponding lines of the forward-looking statement of cash flows, wherein lines of the forward-looking profit and loss statement corresponds to at least one of an underlying organizational spending plan associated to at least one of the plurality of hierarchies;

means for creating and storing second logical links to link one or more lines of the forward-looking profit and loss statement and at least one line of the forward-looking balance sheet to one or more corresponding lines of the forward-looking statement of cash flows;

means for receiving user input;

means for associating the user input with a forward-looking statement selected from the group consisting of the forward-looking profit and loss statement, the forward-looking balance sheet and the forward-looking statement of cash flows, wherein associating includes updating the selected forward-looking statement;

means for automatically updating the corresponding lines of each of the forward-looking statements associated with the selected forward-looking statement and the plurality of hierarchies;

means for receiving user input providing one or more updates to the set of financial statements in a private planning environment;

means for receiving user input requesting to publish the set of financial statements from the private planning environment to a shared planning area; and

means for publishing the set of electronic financial statements to the shared planning area only when one or more amounts in the set of financial statements being published satisfy one or more constraints in a related set of financial statements.

16. An apparatus for providing automatic control of a financial plan that is embodied in an electronic forward-looking profit and loss statement that includes at least one planned amount for a future accounting period, comprising:

a network interface that is coupled to the data network for receiving one or more packet flows therefrom;

a processor;

one or more stored sequences of instructions which, when executed by the processor, cause the processor to carry out the steps of;

creating and storing a plurality of hierarchies, wherein the hierarchy includes a business unit hierarchy and a functional unit hierarchy;

creating and storing an electronic forward-looking profit and loss statement having a plurality of target spending amounts, an electronic forward-looking balance sheet associated with the forward-looking profit and loss statement, an electronic forward-looking statement of cash flows associated with the forward-looking profit and loss statement and the forward-looking balance sheet;

creating and storing one or more first logical links to link one or more lines of the forward-looking profit and loss statement to one or more corresponding lines of the forward-looking statement of cash flows;

creating and storing one or more second logical links to link one or more lines of the forward-looking profit and loss statement and one or more lines of the forward-looking balance sheet to one or more corresponding lines of the forward-looking statement of cash flows, wherein lines of the forward-looking profit and loss statement correspond to at least one of an underlying organizational spending plan associated with the functional unit hierarchy;

receiving a user input;

associating the user input with a forward-looking plan statement selected from the group consisting of the forward-looking plan profit and loss statement, the forward-looking balance sheet and the forward-looking statement of cash flows, wherein associating includes updating the selected forward-looking plan statement;

automatically updating the corresponding lines of each of the forward-looking plan statements associated with the selected forward-looking plan statement and the plurality of hierarchies;

receiving user input providing one or more updates to the set of financial statements in a private planning environment;

receiving user input requesting to publish the set of financial statements from the private planning environment to a shared planning area; and

publishing the set of electronic financial statements to the shared planning area only when one or more amounts in the set of financial statements being published satisfy one or more constraints in a related set of financial statements.