Generating sensitivity analysis report

This page allows you to generate a sensitivity analysis report. Tell me more.

Select the “Sensitivity Analysis” link from the “Distribute Normal Cost Element” page.

The “Sensitivity Analysis” page appears.

The system displays the following:

Business Unit	The code identifying the business unit for which the contribution analysis report is being generated.
Cost Center Structure ID.	The code identifying the cost center structure based on which the contribution analysis report is being generated.
Cost Center	The code identifying the cost center for which contribution analysis report is being generated.
Cost Element Structure ID.	The code identifying the cost element structure for which contribution analysis report is being generated.
Row ID.	The number identifying the specific row of the cost element structure whose cost elements are considered in the contribution analysis.
Item Code From	The starting code in the range of codes identifying the item for which the contribution analysis report is being generated.
To	The ending code in the range of codes identifying the item for which the contribution analysis report is being generated.
Item Group	The code identifying the item group whose items are considered for the contribution analysis.
Item Variant From	The starting code in the range of codes identifying the item variant based on which the contribution analysis report is being generated.
To	The ending code in the range of codes identifying the item variant based on which the contribution analysis report is being generated
Allocation Preview	A specification of whether allocated costs from the cost centers must also be included in the contribution analysis report.
Cost Type	The type of cost that is considered in the contribution analysis, which could be “Actual Cost”, “Standard Cost” or “Rollup Cost”.
Standard Cost Option	The type of standard cost that must be considered for the contribution analysis, which could be “Actual”, “Budget”, “Manual” or “NULL”.
Production Location	The organization unit in which the items were produced.
Start Date	The start date of the financial year for which the contribution analysis report is being generated.
End Date	The end date of the financial year for which the contribution analysis report is being generated.

Enter the following fields:

Freeze	Use the drop-down list box to specify the attribute of the item code and item variant combination that has to be frozen in the multiline. You can select from “Current Quantity”, “Average Price”, “Alt. Qty 1” or “Alt. Rate 1”. The system leaves the field blank by default on launch of the page.
Budget No.	The code identifying the budget against which every item code and item variant combination’s quantity and rate are compared (Alphanumeric, 18). Mandatory.
	Help facility available
Version No.	The code identifying the version of the budget against which every item code and item variant combination’s quantity and rate are compared (Alphanumeric, 10). Mandatory.

Click the “Get Details” pushbutton to retrieve the sensitivity details.

The system retrieves the alternate quantity and rates for every item code and item variant combination that is a part of the contribution analysis from the budget specified.

The system displays the following in the “Sensitivity Details” multiline:

Item Code	The code identifying the item based on which contribution analysis report is generated.
Item Variant	The code identifying the item variant based on which contribution analysis report is generated.
Current Quantity	The quantity of the item (variant) that is under consideration in the report.
Average Price	The average unit price of the item (variant) that is under consideration in the report.

Enter the following fields in the “Sensitivity Details” multiline:

Alt. Qty. 1	The first alternate quantity of the item (variant) that is under consideration in the report (Decimal).
Alt. Rate 1	The first average unit price of the item (variant) that is under consideration in the report (Decimal).
Alt. Qty. 2	The second alternate quantity of the item (variant) that is under consideration in the report (Decimal).
Alt. Rate 2	The second average unit price of the item (variant) that is under consideration in the report (Decimal).
Alt. Qty. 3	The third alternate quantity of the item (variant) that is under consideration in the report (Decimal).
Alt. Rate 3	The third average unit price of the item (variant) that is under consideration in the report (Decimal).

Note: The values entered in the above fields can be retrieved from the budget or can be entered manually.

For a valid item code and item variant combination, atleast one set of alternate quantity and price must be entered.

Profit Calculation Logic for Sensitivity Analysis

Alternate Value Calculation

If the “Freeze” field has been left blank then the alternative values are calculated as the product of respective alternative rates and quantities.
If the “Freeze” field has been set to “Current Quantity” then the alternative values are calculated as the product of current quantities (fixed) and alternative rates.
If the “Freeze” field has been set to “Average Price” then the alternative values are calculated as the product of alternate quantities and average price (fixed).
If the “Freeze” field has been set to “Alt. Qty. 1” then the alternative values are calculated as the product of alternate quantity - 1 (fixed) and other alternative rates.
If the “Freeze” field has been set to “Alt. Rate 1” then the alternative values are calculated as the product of alternative rate – 1 and other alternate quantities.

Revenue Cost Calculation

Revenue cost for every item (variant) is calculated as the product of the respective alternate quantity and alternate rate.

Manufacturing Variable Cost Calculation

Manufacturing variable cost for every item (variant) is calculated as the product of the alternate quantity and actual manufacturing variable cost.

Manufacturing Fixed Cost Calculation

Manufacturing fixed cost for every item (variant) is calculated as the product of the alternate quantity and actual manufacturing fixed cost.

Non-manufacturing Variable Cost Calculation

Non-manufacturing variable cost for every item (variant) is the distribution of the total non-manufacturing cost as specified by the ratios entered in Distribute Normal Cost Elements page.

Non-manufacturing Fixed Cost Calculation

Non-manufacturing Fixed Cost Calculation for every item (variant) is the distribution of the total non-manufacturing cost as specified by the ratios entered in Distribute Normal Cost Elements page.

Total Variable and Fixed Costs

The system calculates the Total Variable Costs to be the sum total of the Variable Manufacturing Costs and Variable Non-Manufacturing Costs.
The system calculates the Total Fixed Costs to be the sum total of the Fixed Manufacturing Costs and Fixed Non-Manufacturing Costs.

Profit

The system calculates the Profit as the Total Sales less the Total Variable Cost and the Total Fixed Costs.
Click the “Preview” pushbutton to preview the item-wise contribution analysis report.

The system executes the profit calculation logic and displays the item-wise contribution analysis report in form of a crystal report.

Generating sensitivity analysis report – An overview

This report is also an item based report and the item details are as specified in the “Contribution Analysis” and the “Distribute Normal Cost Element” pages. This report is usually developed for comparative purposes. The alternate values against which the item code and variant combinations are to be compared can be retrieved from a budget. You can specify the budget and its version number to do so. On the other hand, the alternate values can also be manually entered.

This page also allows you to freeze certain values during comparison. You can freeze the actual quantity, average price, alternate quantity or alternate prize. The report can be previewed as a crystal report, can be directly printed or can be redirected to an Excel spreadsheet.

Prerequisites

Optional

“Budget Number” and “Version No.” must have been defined in the “Cost Budget” business component.