Divisional Quality Check

Divisional Quality Check shows the degree of use of Class, Tracking Codes, Jobs in connected accounting file and hence the level of Segmentation.

By showing the diversity of segmentation ie. how many of these codes are used and allocated to, how frequently they are allocated and the bias of these allocations this then indicates how successful divisional reporting outputs will be on the file.

Divisional Data Quality

This tab shows the diversity of allocations. It shows the two possible Analysis codes

• the top half we label Department ( TC1, Location, Category) with blue headings
• the botton we have labelled Division (TC2, Class, Job) with green headings

These are divided into the following metrics

• Lists of USED analysis codes. The Quantity indicates the degree of divisionalisation. To the right of this are arrangement into levels or hierarchy .
• Diversity ( allocations to several codes) to Actuals and Budget, Income and Expense
• Consistency ( allocation over several periods)
• Bias ( Amount not biased to a few codes)  

The more Lists indicate a greater use of analysis codes. In Diversity the more colours on the horizontal bars the more actuals and budgets, income and expense are broken into analysis codes.  The more periodic Consistency of the allocations indicate how well the comparison of each period will result and lastly the Bias indicates the major business units and what should be measured individually or what analysis codes could grouped together. This provides insight as to which analysis dimension should be selected and filtered in the Divisional Profit and Loss Template workbook

Examples of Divisional Data

We have a few examples from various accounting systems. Please note all of these system can handle multiple analysis dimensions, analysis levels and monthly budgets although some require Bi4Cloud Cool Stuff features for Budget entry (MYOB) or Level hierarchy ( Xero)

A Golf Club

Example1:  This is a QuickBooks Online file of a Golf Club. 

The top half shows Locations these have blue headings.

• The List of Analysis codes only has EAST.
• The horizintal bar shows there is No Diversity in postings to Actuals and Budget. This Analysis dimension will provide  limited Divisional Profit and Loss reports.
• The Consistency measure shows budgets only in the last 6 months.
• The Bias measure (radar) shows everythin to one code EAST

The bottom half shows Class transactions with green headings.

• The List of Analysis code shows many are used and these are arranged into levels.
• Diversity shows several transaction allocations for both Actuals and Budgets over Income and Expense classes so reports should have useful Actuals vs Budget and Income, Expense and Profit results
• The Consistency show 6 months of postings.
• The Bias is fairly even and not only of one code

Using this Analysis code will produce rich P&L Divisional reports.  ( 2 min )

A Pool Builder

Example 2: This is a MYOB AccountRight of a Pool Builder.

The top half (with Blue headings) shows that Categories are not used. Not much to see here.

The bottom half ( with Green headings) shows

• List of several Jobs and also Job Levels.
• The Diversity is mostly on Income and less on Expense and there are no Budgets.
• The Consistency shows allocations is lumpy because it's purpose is to focus on Job activities.
• The Bias show the activities are fairly evenly distributed.

Using this Analysis code you can produce Margin Analysis reports.  ( 2 min )

Example 3: This is a Xero file for an Events company.

The top half (with Blue headings) shows Events and the allocation of budget and actuals all tracking income.  There is good List Quantity and Levels with good diversity, consistency and even bias.

The bottom half ( with Green headings) also shows good List Quantity and Levels with good diversity, consistency and even bias. 

Hierarchy and Levels - QuickBook and MYOB AccountRight provide creation of levels of hierarchy within their system. For Xero use Bi4Cloud which implements hierarchy using separators in the Tracking Category name. See Divisional Budgets for further explanation

With this level of allocation some neat reports can be produced showing Analsysis codes with collapsible levels summaries, details and drilldown.