Reconciliation process

Since the profitability components should be aligned with the official, i.e. externally communicated profit and loss statement, our solution provides a user-friendly setup to establish the reconciliation process supported by validation rules and comparison between the profitability components and P&L statement at the legal entity level. If unreconciled differences are found, the reconciliation module makes it possible to allocate those to any dimension.

What-if analysis and scenario management

In order to be able to make better decisions, PROFITability 5.16 provides advanced what-if analysis. You can run simulations to understand how different scenarios affect profitability performance and income statement. Here are a few common use cases to simulate:

  • changes in the cost structure, e.g. different types of contribution margin components,
  • changes in specific allocation rules for indirect and activity-based costs,
  • changes in different sources of expenses, e.g. regulatory vs. internal capital or IFRS9 impairments vs. new test calculation.