Execution plan

Once the setup has been completed at the group level, it is necessary to define, in the Execution plan, the group entities to be processed in the Financial Planning process in question and the type of data processing to be performed for each of them.

The execution plan is defined by process; therefore, different processes can have different execution plans.

Management of the execution plan can be accessed from Setup & Admin > Processes > Process definition > Data processing > Cash Flow Planning > Requirements () > Execution plan.

Navigation panel> Processes & Workflow > Process > Process definition > Data processing > Cash Flow Planning > Requirements () > Execution plan.

For every entity/data process (Indirect tax policies-Cash Management and Direct taxes) it is necessary to specify whether the calculation is:

Notional: The notional calculation is performed when the user wants to manage VAT, cash management and direct taxes at the sub-entity level, or a more detailed level for the entity, such as by work order or initiative. In this case, the work order/initiative must be managed in the list of entities using the “Run as sub-entity” attribute. The notional calculation is performed on an ad hoc category which must be defined by accessing Setup & Admin > Data processing > Cash Flow Planning > general rules > Generic Rules > Notional data generation category. Navigation panel> Data processing > Cash Flow Planning > general rules > Generic Rules > Notional data generation category.The following methods are possible:

  • No. The system does not run the notional calculation on the selected entity
  • Yes. The system runs the notional calculation on the selected entity
  • On other Entity. The system uses the selected entity’s data to contribute to the calculation being performed on another entity. In this case, it is necessary to specify the target entity

The notional calculation option is only visible if the user wants to manage that calculation in the application, i.e. if the category on which to generate the notional data is defined in the general cash flow planning rules.

On entities. The entity calculation or company calculation is performed in the majority of cases, when the data processes are managed at the entity level.

The following methods are possible:

  • No. The system does not run the entity calculation on the selected entity
  • Yes. The system runs the entity calculation on the selected entity
  • On other Entity. The system uses the selected entity’s data to contribute to the calculation being performed on another entity. In this case, it is necessary to specify the target entity.

If the value is set to “On other Entity” and the data of the selected entity contribute to the group calculation, it is not necessary to define the group section. When saving the window, the system automatically defines that selection, specifying the parent entity of the relative group.

On group (only for indirect taxes and cash management). The group calculation is managed in cases of group VAT and cash pooling.

The following methods are possible:

  • No. The system does not run the group calculation on the selected entity
  • Yes. The system runs the group calculation on the selected entity
  • On other Entity. The system uses the selected entity’s data to contribute to the calculation being performed on another entity. In this case it is necessary to specify the reference holding entity.

It is possible to have cash pooling:

  • at the sub-holding entity level: In this case every entity belonging to the sub-holding entity has the “Group calculation” mode defined as “On other Entity” and the definition of the target “sub-holding” entity”.
  • at the total group level: every sub-holding entity has the “Group calculation” method defined as “On other Entity” and the definition of the target “holding” entity.
  • The holding entity has “Group calculation” equal to YES

The group calculation option is only visible if “Cash Flow Planning- Indirect Taxes- Cash pooling” data processing is enabled within the process in question.

Let us explain using two examples.

CASE 1. The Financial Policy calculation is performed both for sub-entities (e.g. work order/initiative:A00) in which case the selected work order has the attribute “sub-entity” in the entity list, and at the company level (A01).

Work order A00:

  • It is necessary to define the “Notional calculation” field as “Yes
  • It is necessary to define the “Entity Calculation” field as “On other entity” and enter the entity on which the entity calculation (A01) is performed in the reference entity field

Entity A01:

  • It is necessary to define the “Entity Calculation” field as “Yes”

CASE 2. The Cash Management and VAT Calculation is performed by entity and by group (Group VAT and cash pooling). It is necessary to differentiate between two cases:

  • the selected entity is the group’s parent entity (e.g. C00). In this case, it is necessary to define the “Entity calculation” field as “Yes” and the “Group calculation” field as “Yes”.

  • the selected entity is a subsidiary (e.g. C00_C). In this case, it is necessary to define the “Entity calculation” field as “Yes”, the “Group calculation” field as “On other entity”, and the group’s parent company as the reference holding entity (C00)

CASE 3. The Cash Management and VAT calculation is performed by entity, by sub-holding entity and for the group. it is necessary to differentiate between three cases:

  • the selected entity is the holding entity (X00). In this case, it is necessary to define the “Entity calculation” field as “Yes” and the “Group calculation” field as “Yes”.

  • the selected entity is the sub-holding entity (D01). In this case, it is necessary to define the “Entity calculation” field as “Yes”, the “Group calculation” field as “On other entity”, and the holding entity as the reference holding entity (X00)

  • the selected entity is a subsidiary (belonging to the sub-holding entity) (D01_A). In this case, it is necessary to define the “Entity calculation” field as “Yes”, the “Group calculation” field as “On other entity”, and the sub-holding entity as the reference holding entity (D01)

It is possible to customise the target entity

  • by policy in cases of indirect taxes. The target entity can be customised from the Reference Holdings by Indirect Taxes Policy link:

  • the indirect tax policy (Tax policy)

  • the parent entity to which the indicated tax policy refers (Reference holding)
  • by line of credit and deposit in cases of cash management. Customisation is defined from the Reference holdings for cash pooling link:
  • the line
  • the parent entity to which the specified line refers

Additional information is included below. This information can be modified in respect of the default value entered automatically when entering the entities.

  • if any non-deductible VAT should not increase costs and revenues, but rather be booked on the non-deductible tax account (Non-deductible account option). That account is the account defined in the fiscal policy of the indirect tax rule attributed to the entity.

  • the methods with which the entity must proceed with the payment of direct taxes (Direct taxes payment type). The following methods are possible:

  • No automatism. The system does not perform any balance payment or down payment calculation

  • Calculate amount only. The system only calculates the amount of the payment but does not perform the booking or settlement of the down payment
  • Calculate down payment on actual and balance. The system performs the settlement of the taxes and down payments balance, the latter being calculated on the basis of the previous year’s tax balance

It should be noted that this calculation type refers exclusively to tax balance settlements and down payments, but not to the recognition of taxes on an accrual basis, which are calculated on the basis of the fiscal policy associated with the entity on the list. - the dividend rule, or the rule to be used for the dividend distribution calculation. This rule is assigned to the subsidiary entity. - the depreciation type (in the assets calculation). The following types are possible:

  • Statutory. The system uses “statutory” rates for the depreciation calculation.
  • Fiscal. The system uses “standard” rates for the depreciation calculation.

  • the leasing calculation type. The following types are possible:

  • Financial (IAS). In this case, the leasing agreement is treated like a sale

  • Balance sheet (Civil Code). In this case, the leasing agreement is treated like a standard lease

Utilities

Update Entities

Tagetik has a function for automatically opening entities to be included in the execution plan. This function can be accessed from the Utilities menu () in the execution plan management window.

The user must indicate whether only new entities must be included in the execution plan, leaving the existing records unchanged (Only missing option active)

The system includes the entities selected in the execution plan and, for each of them attributes the default values to the various options. For each data processing type (indirect taxes, cash management, direct taxes), it also sets the following options:

  • Notional calculation and target entity
  • Entity calculation and target entity
  • Group calculation and reference holding entity

based on what is defined in the organisational hierarchy of the process. In particular, if for a given node the “CFP: Run Data processing as” option is set as

  • Sub-entity, then:
  • for the reference entity associated with that node, the system sets, in the execution plan, the “notional calculation” option to “Yes” for all data processing types, i.e. the data processing is done for a sub-aggregate of the entity.
  • for the node’s child entities, the system, in the execution plan, sets the “notional calculation” to “On other entity” for all data processing types and sets the “Target entity” field as the reference entity associated with the same node
  • Entity, then
  • for the reference entity associated with that node, the system sets, in the execution plan, the “entity calculation” option to “Yes” for all data processing types, i.e. the data processing is done at the company level
  • for the node’s child entities, the system, in the execution plan, sets the “entity calculation” to “On other entity” for all data processing types and sets the “Target entity” field to the reference entity associated with the same node

  • Group, then

  • for the reference entity associated with that node, the system sets, in the execution plan, the “Group calculation” option to “Yes” for indirect taxes and financial policy, or the group data processes are performed

  • for the node’s child entities, the system sets, in the execution plan, the “group calculation” option to “On other entity” for indirect taxes and financial policy, and sets the “Reference holding” field as the reference entity associated with the same node