EPEP

The primary purpose of EPEP (Expected Period End Profitability) is to produce a mini-P&L statement that tracks revenue and expenses on a day-by-day basis. With the ability to track on such a detailed level, you can make adjustments to your operation as needed. For example, you budgeted $4,000 this month for cleaning supplies, but on the 10th of the month you see that you've already spent $3,000. This would indicate that cleaning supplies were significantly under-budgeted. Having this information analyzes why the budgeted amount is off. It may be that revenue is higher than expected, so the increase in supplies is appropriate. However, if revenue is on budget, and there isn't a clear explanation for the increase, you have the opportunity to determine why and make adjustments as needed.

The purpose of using this program is to automate this process as much as possible. The main components that are fed into this program are:

1. Daily Sales Revenue (from 

   RMS

   Revenue)
2. 30-Day Revenue Forecast
3. Accounts Payable Data (including Invoices and Hit Lists)
4. Budget Information (from 

   RMS

   Budget)
5. Payroll
6. Journal Entries (from a corporate accounting system)

Other components include:

• Entering Period End Forecast
• Generating Profit Flex
• Importing Profit Data
• Profit Inventories
• Re-Calculating Profit
• Reconciling Hit Lists
• Vendors
• Viewing Profit

By having this program call out to the other modules, your tasks of duplication become obsolete in preparing a workable and accurate P&L statement.

With proper usage of this program, you should be able to forecast what your actual P&L will look like for any given day, long before the end-of-month Actuals are finalized. The greater the detail that goes into EPEP, the closer your end-of-month EPEP P&L will be to your actual P&L. You will also be able to create a flex budget that uses your original budget assumptions and actual period revenue drivers.

There are three features that provide the most accurate performance analysis throughout the year for better control in driving profitability:

• Flex Budgeting—Adjusts the original budget with the actual performance levels in order to show what the expenses should be according to the revised revenues.
• Remaining Period amounts—Estimates the budgeted expenses for the rest of the period. The Remaining Period revenues are revised forecasts used in the flex calculations.
• Declining Balance Report—Calculates the amounts per account that can be spent until the end of the period to meet budget goals.

There are several ways to get data into EPEP: importing it from outside systems, manually entering it, or importing it from your 30-60-90 day forecast in Budgeting. However, you must create your Hit Lists (for Fixed line types only) and configure Calc Methods (for Fixed line types for which you do not wish to create a Hit List and all other line types) before any data is entered.

Related topics:

• Budgets
• Configuring-Viewing Budgets
• Copying a Dataset
• EPEP
• Flex Budgets & Actuals
• Forecasting KBIs
• New Budgets
• Opening Budgets
• Rebuilding the Cost Structure
• Re-Forecasting
• User-Defined Types
  
  
  #Back to top