In Part 1 of this series – a planning software buyer’s guide – I covered the first essential component of a modern planning system: workflow. Let’s keep the ball rolling with another component that is vital to your next planning solution.
Spread methods are an efficient way to automate plans for a period without starting from scratch every time. Simply defined, spreading is the system’s ability to take a budget value and spread it over a range of periods based on a divisible operator (like percent per month, for example). Your planning system should include built-in spreading functionality, especially the more popular methods – even (the most used method in practice), spread like last year, and spread like last year +/- a dollar value or percent.
Essentially, spreading is a fast data entry method. It will save time to have your system manage and centrally control your corporate spread methods. Users should also be able to create their own. A nice-to-have feature is color changes where data has been entered. Click to expand the image above and you’ll see an arcplan Edge system, where blue cells indicate areas where data can be entered and yellow cells indicate that data has been entered during this session.
Note: The terms “spread” and “allocation” are often used interchangeably, but at arcplan we make a distinction between the two. To make it easy for our customers, we say that spreading is bottom-up only and occurs horizontally across financial periods, while allocation is vertically rolled-down spreading. For example…