Written by Nils R. | Oct 10, 2020 7:00:00 AM
What is
a
Consolidating Profit & Loss Report for a Retail Company
? Consolidation reports are considered essential financial statements and are often used by accountants and controllers to show financial performance for individual stores and consolidated for the company. Some of the key functionality in this type of report is that it dynamically lists selected stores or regions across the columns with a consolidated total. The charts on the top of the reports provides easy comparisons. The report can be produced both for actual data as well as budgets and forecasts. The rows show a typical revenue and expense layout for a retail P&L report. The user can drill down on any figure to see the underlying detail. You find an example of this type of report below.
Purpose of
Consolidating Profit & Loss Reports Retail companies use Consolidating Profit & Loss Reports to give corporate managers a quick and easy monthly snapshot of profitability across all retail locations as well as in total. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a company can improve its performance analysis and speed up decision-making as well as reduce the chances that weak profitability goes undetected for a longer time than necessary.
Consolidating Retail Profit & Loss Report
Example Here is an example of a Consolidating Profit & Loss Report with store locations across the columns. [caption id="" align="alignnone" width="2560"]
Example of a Consolidating Profit & Loss Report for a Retail Company[/caption] You can find hundreds of additional examples
here
Who Uses This Type of
Report
? The typical users of this type of report are: Corporate executives, controllers, store managers, regional managers.
Other
Report
s Often Used in Conjunction with
Consolidating Profit & Loss Reports Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Consolidating Profit & Loss Reports, along with sales forecasts and budgets, balance sheets, cash flow statements and other management and control tools.
Where Does the Data for Analysis Originate From? The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others. In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards? Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
