Profit and Loss Analysisand Reporting

Session Goals •  Howtomosteffec+velypinpointprofitableandunprofitablecustomersandunits– ReviewthedifferencesbetweentheUnitPLandGLReportWriterreportsandhowtheyfittogether

– WhichUnitPLreportsarerightforyou– Knowyourop+onsforloadingbudgetsforbudgettoactualcomparisons

– Op+onsforloadingunitcosthistory

GL Report Writer Budget vs. Actual analysis by Company, Facility, and Product Line

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Profit and Loss Analysis

Unit PL Reporting Analysis by Customer, Contract, Unit, Equip Type/Unit Budget vs. Actual

Cost and CPM Reporting Trends in running Cost/CPM based on repair info

How to keep it all straight •  Iden+fythereportstouseforyourcompany

– Beconsistentwiththerepor+ngpackageeachmonth/quarter

•  KnowyourpercentagesandCPM– Whatpercentageofrevenueareyouexpec+ng?– WhatCPMareyouexpec+ng?

•  Confirmthenumbers– Doyourbusinessprocessesmatchtherepor+ngyouaretryingtoget?

– Arethenumbersright?– Arethereanyexcep+ons?

Standard Set of Reports •  Givesyoutrustinthenumbers•  Reviewthedataatdifferentlevelstoiden+fytrends

•  IsittheUnit?•  IsittheCustomer?•  IsittheDriver?•  IsittheSetup?•  IsitourProcess?•  IsittheLoca+on?

•  Don’tGetLostintheDetails!

Primary Breakdown of the P&L •  Revenue

– FixedandVariable•  FixedCosts

– Deprecia+on,Interest,License,Insurance•  VariableCosts

– RepairsandMaintenanceCosts•  Overheads

– Salaries,Facili+es,Administra+on,Commissions•  GainonSale•  CPM

Helpful Ratios for Leasing Portfolio •  LeaseRevenue75%ofTotalRevenue•  AverageFleetAge 26-32months

– FixedCosts < 60%– VariableCosts < 18%– GrossMargin > 22%– Overheads < 18%– Opera+ngProfit > 4%– GainonSale > 3.5%– NetBeforeTax > 7.5%

Several Variables that Affect the P&L •  Fleetage•  U+liza+on•  Runningmetrics•  Make&model•  Customerusage•  PMs

Month End Accruals •  Revenue

–  ReversingRevenueJ/E•  Gettherevenueandmileageintotheperiodearned•  Onlyworkswithrevenuealreadybilled

– UseBOABillingForecastDetailAccrual•  Accruerevenuenotyetbilled(weeklyrentals)•  Helpfulforcustomerswitha+ghtcloseschedule

•  Expense– UnapprovedWorkOrders

•  WorkOrderAnalysisbyFacility•  WorkOrderCostSummary•  RepairHistory

General Ledger Report Writer

•  GLRWreportsarebasedonalltransac+onspostedtotheGeneralLedger.Thesearethetruefinancialstatementsforyourcompany

Enrich Template Reports •  Fullsuiteofreports

– Company•  001.IS,001.BS

– Facility•  FAC.IS

– ProductLine•  001.RR,001.MM,001.LL,001.SHOP,001.FUEL•  FAC.RR,FAC.LL,FAC.SHOP,FAC.FUEL

How the Template Reports Fit Together

Company

Facility

ProductLine

Unit/Customer

Template Reports

Advantages Disadvantages

EasytoaddnewFacili+esandProductLines

Alotofseparatereportstorunifyouaren’trunning‘groups’

Abletolookatreportssidebyside Difficulttoseealloftheexpensedetailinasinglereport(e.g.deprecia+onandinterest)

Abletogivemanagersjusttheirpiece

Easiertomaintain

Customize the GLRW to be More Efficient •  Createasinglereportwiththeprimaryrepor+ngbuckets

•  FixedRevenue•  VariableRevenue•  MaintenanceExpenses

•  Createaddi+onalcolumnformats•  12MonthTrend•  5YearTrend•  Facili+es

•  AddAddi+onalDataElements•  UnitCount•  FleetAge•  Miles

Add Main Reporting Categories

Add Additional Column Formats Addi+onalColumnFormatsenableyoutolookatthedatamoreefficientlyandhelptoiden+fyareasofconcernfaster

– 5YearTrend– 12MonthTrend– ActualvsAverage– Loca+onsMTDandYTD

Add Data Elements to the GLRW Reports

•  UseJournalEntriestomemoaccounts/budgetaccountstoinsertmetrics,unitcounts,andfleetagetothereports– BOAReports:

•  EquipmentCountJEBuilder•  MetricsBilled–Summary•  NetMetricsbyPeriod

– CoreEnrich:•  PLDataforCPMRepor+ngtoAssist

Add Metrics to get CPM

Add Unit Count to See Trend

Use the GL Report Writer in BOA •  GLReportsinsideofBOAprovidetheadvantageofdownloadingthereporttoExcel– Choosetherightreporttomatchyourcolumnformat

– Choosethe‘non-formaqedreport’ifamatchingreportisn’tfound

– EnhancementsinPTF632willallowforrunningreportgroups,allowupto23printed,andprovidetheabilitytodrilldownintothedetails!

Path:Financials/GeneralLedger/GLReportWriterReports/GLRWCoreReports

Which Report to Use

Unit P&L How to drill into the unit and customer

Customer/Unit Profit Loss Thesereportsareusedtosliceanddicethedetailsofrevenueandexpenseagainsttheunits.Theyareusedtoanalyzecustomers,equipment,contracts,models,etc.andtocomparetheperformanceagainsttheratesheets

– Thesereportsshould;etotheGLRWreportsfortheGrossMarginofLeaseandRentalproductlines

Where to Begin in BOA? •  AssetManagement/RevenueandExpense

– ThesereportsarereadingfromtheEquipmentAccoun+ngFile

•  EMMS/Equipment/PLCostPerMile– Thesereportsarereadingfromworkordermaintenancecosts(withtheexcep;onofstoredprocedurereportsforPLCPM)

Asset Management PL Report •  Usethe‘informa+on’tabtonavigatethedatabeingreported– Non-GLAccountSpecificReports

•  LTDUnitProfitandLossSummary•  UnitLTD,T12,T24PLSummary•  LeaseContractMargin•  ContractUnitP&LwithOverhead

– GLAccountSpecificReports•  Customer&UnitAccoun+ngP&LandCPM•  VariableReserve•  EquipmentAccoun+ngContractRevenue

Key Concept •  Current

– Reportsdatabasedonwheretheunitisassignedasofthe+methereportisrun

•  CurrentCustomer,CurrentFacility,CurrentPool,CurrentStatus

•  Historical/Transac+on– Reportsdatabasedonwheretheunitwasassignedatthe+meeachtransac+onwasposted

Reconcile the Data •  Reconcilethenumberseverymonth

–  IncomeStatement•  ContractualRevenue•  TotalFixedExpenses•  TotalVariableExpenses•  GrossMargin

– UnitP&L–BOA•  ContractualRevenue•  Remove“N1”Units•  UseSubtotalsinExcelforquickcomparison

Pivot and Summarize •  UsePivotTablestoreviewdifferentgroupings

Pivot and Summarize •  PivotbyCustomeranddrilldowntotheunit

EMMS Cost and CPM Reports in BOA •  EasyAnalysisoftheRunningCosts

– CostPerMetricbyUnit•  ShowscostsandCPMforaperiodof+me•  Quicklyiden+fyexcep+ons

– Unit7YearCostAnalysisandCPM•  ShowsthecostandCPMforthefirst7yearsandLTDofeachunit

Tip:Filteroutnon-applicableVMRS/ReasonCodes(e.g.capitalcost)

Unit CPM Reports •  GroupbyVMRS,MonthsinService,Make,Model,etc.

CPM Trend •  Unit7YearTrendCostAnalysisandCPM

EMMS Cost and CPM Reports in Core •  UnitRunningCostReport

– 5YearCostTrend– CostTrendperMetricIntervals

•  ShowscostsandCPMforaperiodof+me•  Quicklyiden+fyexcep+ons

Adding the GL & Unit Budget •  ComparingActualvsBudgetforcomprehensiveanalysis

Budgeting •  FinancialGLBudgets

– UploadperGLaccount– UsedintheGLReportWriter

•  UnitLevelBudget– Uploadperunit,perprimaryaccount– Datacanbeloadedpercontractyearorfiscalyear

General Ledger Budget •  UsedinGLInquiryandGLRWreports

Budgets in Inquiry & BOA

Options for the GL Budget •  Flexibilityforloading/maintainingbudgets

– Manuallyenter/maintaininEnrich– Copybudgets

•  Copyfromactuals/budgets,addmul+pliers– Loadfrom.csv– Loadmul+plebudgets

•  Mul+plebudgetsforthesameyear– Flexiblebudgetsusingformulas

•  Formulasbasedonactualsorbudgetnumbers–  CommissionsisX%ofRevenue

– Transferfromtheunitbudget

Unit Level Budgeting

Budget by Period

How Helpful is This? •  Budgeted,actual,andrevisedprojectedrevenue,cost,andmargin

Options for the Unit Level Budget •  Similarop+onstotheGLbudget

– Manuallyloadthebudget– Createbudgettemplatesforsimilarunits/contracts

– Uploadfromaspreadsheet•  Budgetbycontractyear

– Newop+onscomingsoon!

Upload •  Createstandardspreadsheettemplates

Unit PL and CPM Reports Bring it All Together

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Unit PL and CPM

Unit Level and GL Budget Enter the Primary Revenue and Cost

Metrics you are Expecting

General Ledger Report Writer Financial Statements by

Company Facility

Product Line Compare Budget to Actual

EMMS CPM Report Summarizes Repair Costs and CPM from the Shop

Data

Asset Management – Unit PL Easy Review of the

Numbers Slice by Unit, Make,

Model, Contract, Customer, Pool, Equipment Type.

PL CPM Reports •  Thesearethemostcomprehensiveandcustomizablereports–  ReportsaresetupinCoreEnrich–  ReportscanberunfromCoreEnrichorBOA–  Reportscanshowbudgettoactualcomparisons–  Cri+calfixesinPTF631foraccountswithcombinedrevenueandexpenses

UnitPLMonthtoDatevs.AverageMonthCurrentPeriodvs.SamePeriodLastYearYTDvsYTDLastYear

PL CPM Reports •  Avgmonth,MTD,YTD,LTDactualsvs.budget$andCPMand%ofrevenue

PL CPM Grouping/Sorting Options

Download the Detail to BOA

216 Columns of Details! Custom–UnitPLCPMBOADownloadreport

Unit PL/CPM Download - Unformatted

P&L/CPM Setup

Historical Data •  UnitLevelP&LHistory

– LoadsdataintotheEquipmentAccoun+ngFile–usedfortheLTDUnitPLHistory

•  WorkOrderHistory– LoadsdataintotheEMMSWorkOrders–usedfortheUnitCost/CPMreport

Equipment Account Records Report •  TheEquipmentAccoun+ngRecordsReportcanbeusedforavarietyofpurposes– ValidatethenumberspullingintotheunitPL– Validatethetransac+onsagainstEnrich/GeneralLedgerDetail

– Reviewthedetailsofspecifictransac+ons– DownloadtoExcelandpivottocreateyourownPL

Path:BOA/SupportReports/EquipmentAccoun;ngRecords

Putting it All Together •  RunthefullsuiteofGLRWreports

– Reviewthetrendsandactualvs.budgets– Reviewthepercentageofrevenuecomparedtoexpecta+ons

•  ReconciletheUnitPLtotheGL– Confirmrevenue,fixed,andvariableexpenses+etoGL

Putting It Together •  SliceandDicetheCustomer/UnitPL

– Unitcounts– Averagemonthsinservicebyfacility/supertype– Reviewrevenue,fixedexpense,variableexpense,margin,andpercentages

•  Byfacility•  Bysupertype•  Bycustomer•  Bymake

– Reviewbestandworst

Next Steps •  CustomizeGLRWreports•  AligntheunitPLformattomatchtheGLRW

– Allowsforquickreviewtoverifydata•  ConfirmtheunitPLreportstouse•  Createpivottablesfortheprimaryreportgroupings

•  Loadbudgets

Helpful Documentation

https://secure.richer.ca/index.php/support/documentation/emms-manuals.html

Tax & P&L CPM Reports https://secure.richer.ca/index.php/support/documentation/financials-manuals.html

GL Reports and Inquiries https://secure.richer.ca/index.php/support/boa-resources.html

Available Reports Contact enrich help desk to arrange consulting services and training

Questions & Comments