Sga Model

Cognos SG&A Model
User Guide and Documentation

SGA Model Documentation

Table of Contents
Planning Process ........................................................................................................................................... 5
Overview ................................................................................................................................................... 5
Planning System ........................................................................................................................................ 5
System Set Up ........................................................................................................................................... 5
Cognos Planning System ............................................................................................................................... 6
Why Cognos? ............................................................................................................................................ 6
Before and After ....................................................................................................................................... 6
How Cognos fits into the Planning Process............................................................................................... 6
Fiscal Year and Planning Versions ............................................................................................................. 6
Cognos Navigation ........................................................................................................................................ 7
Overview ................................................................................................................................................... 7
Screen Parts .............................................................................................................................................. 7
Tips and Tricks ........................................................................................................................................... 8
SG&A Expense Planning Model..................................................................................................................... 9
Overview ................................................................................................................................................... 9
Collection and Calculation ........................................................................................................................ 9
Consolidation ............................................................................................................................................ 9
Get Data Overview .................................................................................................................................. 10
Summary Model.......................................................................................................................................... 11
Overview ................................................................................................................................................. 11
Variances ................................................................................................................................................. 11
Data Entry ............................................................................................................................................... 11
Monthly Expense Model ............................................................................................................................. 12
Overview ................................................................................................................................................. 12
Data Entry ............................................................................................................................................... 12
FTE Summary Model ................................................................................................................................... 13

Page 2


Overview ................................................................................................................................................. 13
Data Entry ............................................................................................................................................... 13
Links ........................................................................................................................................................ 13
Field Sales Salary Model.............................................................................................................................. 14
Overview ................................................................................................................................................. 14
Data Entry ............................................................................................................................................... 14
Calculations ............................................................................................................................................. 14
Links ........................................................................................................................................................ 14
Benefits Expense ......................................................................................................................................... 15
Overview ................................................................................................................................................. 15
Data Entry ............................................................................................................................................... 15
Calculations ............................................................................................................................................. 15
Links ........................................................................................................................................................ 15
Training Expense ......................................................................................................................................... 16
Overview ................................................................................................................................................. 16
Data Entry ............................................................................................................................................... 16
Calculations ............................................................................................................................................. 16
Links ........................................................................................................................................................ 16
Travel Expense ............................................................................................................................................ 17
Overview ................................................................................................................................................. 17
Data Entry ............................................................................................................................................... 17
Calculations ............................................................................................................................................. 17
Links ........................................................................................................................................................ 17
Contractor Expense ..................................................................................................................................... 18
Overview ................................................................................................................................................. 18
Data Entry ............................................................................................................................................... 18
Calculations ............................................................................................................................................. 18
Links ........................................................................................................................................................ 18
Expense Input Model .................................................................................................................................. 19
Overview ................................................................................................................................................. 19
Data Entry ............................................................................................................................................... 19
Calculations ............................................................................................................................................. 19

Page 3


Links ........................................................................................................................................................ 19
IT Detail Build Up ........................................................................................................................................ 20
Overview ................................................................................................................................................. 20
Data Entry ............................................................................................................................................... 20
Calculations ............................................................................................................................................. 20
Links ........................................................................................................................................................ 20
Internal Order Model .................................................................................................................................. 21
Overview ................................................................................................................................................. 21
Data Entry ............................................................................................................................................... 21
Calculations ............................................................................................................................................. 21
Links ........................................................................................................................................................ 21
Marketing Planning Model (External) ......................................................................................................... 22
Overview ................................................................................................................................................. 22
Data Entry ............................................................................................................................................... 22
Calculations ............................................................................................................................................. 22
Links ........................................................................................................................................................ 22
Employee Detail- Salary and Headcount Model ......................................................................................... 23
Overview ................................................................................................................................................. 23
Data Entry ............................................................................................................................................... 23
Calculations ............................................................................................................................................. 24
Links ........................................................................................................................................................ 24
IT Project Model .......................................................................................................................................... 25
Overview ................................................................................................................................................. 25
Data Entry ............................................................................................................................................... 25
Calculations ............................................................................................................................................. 25
Links ........................................................................................................................................................ 25

Page 4


Planning Process
Overview
The Planning Process is completed multiple
times per year based upon request from TPC.
The process is supervised by Financial Planning.
There is a calendar of events that is issued prior
to the process.

Each Business Function is responsible for their
Planning activities based upon the calendar.
Cost Center Managers and Project Managers
System Set Up
contribute inputs to the process via the Cognos
To use the system, Contributor Software load
Planning System (aka Contributor).
needs to occur, and Security Access to system
Collaboration is the philosophy- get more needs to be created.
people involved who know the data the best.
User sends a request to Financial Systems
mailbox (financialsystems@tpna.com) and
Planning System
provides a brief explanation/reason of access
Plan Process Contributors can access the
needed and the Cost Center, Product or Project
Cognos Planning System (Contributor) via
needed.
Intranet Web using Internet Explorer and
Cognos software. Before using the software, Takeda Information Technology manages
you must have software loaded and access. Contributor Software load. Financial Systems
sends the email with instructions on how to
The Planning System is made up of Applications
download Cognos Contributor software via
or Models used to calculate Expense Plans and
Altiris System to the user.
Revenue Plans (please see diagram).

Contributor looks like a Spreadsheet or Grid  Any issues with Contributor Software
should be reported to the IT Helpdesk
that allows data to be entered into cells. Pre-
populated calculations use the inputs to via phone or ITSM ticket system.
complete the Plan. Calculations can be Financial Systems sets up the Security Access
customized to meet needs. and sends an email with confirmation of
Security Access to Contributor for items can be completion to the requestor.
secured at the Cost Center, Product or Project  Any issues with Security Access should
level depending on the model being used. Each be reported to Financial Systems
Model has separate security settings. mailbox (financialsystems@tpna.com ) .

Page 5


Cognos Planning System

Why Cognos? How Cognos fits into the Planning
Cognos was implemented as a process Process
improvement project. The benefits are:

 Streamline the forecasting and planning
process for Takeda
 Prevent inconsistent versions of
planning documents and allow for easy
distribution of assumption changes
 Provide a centralized collection and
Plan administration tool for the cost
center managers
 Flexible processes and tools that adjust
with business demands (i.e. re-
organizations, new products, etc.) Cognos exists as a means to submit planning
data in the process. Before accessing, the
Business User is advised to start to think about
what activities to plan for in the upcoming
Before and After period. Once data is gathered, access the
system and enter data.

Fiscal Year and Planning Versions
Takeda’s Fiscal Year is April to March. The
Planning System recognizes and uses the Fiscal
Year format.

Multiple Plan Versions are created each Fiscal
Year:

 Original Plan (PLN)
 Latest Best Estimate (LBE1, LBE2, etc.)
 Comparisons are made for analytical
The previous Excel based system depended purposes in the Planning System
upon the Financial Analysts to consolidate data
and ensure version control.

Cognos is a distributed system that pulls the
human element out of the process.

Page 6


Cognos Navigation
Overview Screen Parts
The system is accessed from the Intranet or
Horizon. Must be directly or VPN connected to
use the system.

From “Services and Resources” and select
“Finance”. From Finance, select “Contributor
E- List Table
Planning System Links” on the left side of the
screen.

There are two sections of the Contributor
Screen:

1. E-List: this is the navigation between
the different Business Areas in the
system. The Hierarchy is based upon
the SAP System Standard Hierarchy
2. Table: this table shows the items in the
This will launch the Cognos Connection E-List that can be accessed.
Website. Select the folder and then the model:
Individual items can be opened by selection
from the Table. Also, all items in a E-List
Hierarchy can be accessed via the first item with
the “(All)” notation.

Please note: Using the “(All)” item allows opening of
the subtotal plus the immediate children that roll up
to the subtotal (1 level down only).

When an item is selected, the application is
launched. Take Ownership (allows editing) by
The model will launch and you will be able to selecting the First Icon on the left to begin:
access a node (in this case it is a cost center):

Page 7


Tips and Tricks

Page 8


For Calculation, unit and price metrics entered
SG&A Expense Planning Model into the model are used to calculate total costs.
For example, contractor hourly rates and time
Overview duration are entered, and total expense is
The SG&A Model is used to collect, consolidate calculated.
and calculate the Cost Center Plans. This model
is used by all Affiliates for Department Planning All Collection Models are connected to the
at the Cost Center Level. Monthly Expense Model. The Monthly Expense
will list all GL Accounts for the area and are
Master Data for General Ledger Accounts, summarized by Account Type. The Account
Internal Orders, and Cost Centers are loaded Types are linked to the Summary Model.
from SAP. The process seeks to harmonize the
data in Cognos to SAP. Consolidation
For Consolidation, there are also links to Other
Completed and approved plans are loaded into Cognos Websites that use the “Get Data”
Planning Versions in SAP to accommodate process to pull information into the SG&A
reporting in SAP and the Microsoft Reporting Expense Planning Model.
System.
The Other Cognos Websites are built to perform
Collection and Calculation a specialized calculation not contained in the
For Collection, there are several models or tabs SG&A Expense Planning Model. Get Data Links
in the model that are used for specific purposes. exist for the Marketing Model, IT Project Model,
Training, Travel, Contractor, Expense Input, IT and Headcount and Salary Model.
Detail and Internal Order inputs are available.

Page 9


Get Data Overview

Get Data connects multiple Cognos Applications
moving summarized data from differently
formatted Models or Secure Models to a
common consolidation Model.

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10


Summary Model
Overview
The Summary Model or tab lists the Summary Variances
of the results of the inputs to the model as A “Variance” is calculated as:
compared to the prior Planning Version.
If Current Version is Greater than Prior Version,
The Summary Model is populated by the it should be a Negative representing
Monthly Expense Model (which is populated Unfavorable.
from all data entry and Get Data sources).
If Current is less than Prior, then it should
The Summary Model is intended to give the display Positive or Favorable.
user an overview of the results as compared to
previous version.
Data Entry
The commentary column is open for user input.
This is intended to capture the reason for the
Variance in business terms. No other data entry
area is required for this model.

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.

Data Entry
Monthly Expense Model No data entry is needed for this model as it
receives data from the other Internal and
Overview External Models
Monthly expense summarizes the data in the
model by GL Account and Month.

The Subtotals in this model link to the
corresponding items in the Summary Model

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12


FTE Summary Model

Overview Links
This model summarizes the Full Time Equivalent Data is linked to this model from:
for Company Headcount and External
Contractors/Consultants. 1. Get Data links from “Salary and
Headcount” Model
Data Entry 2. Contractor Model
There is no data entry to this model. 3. Expense Input Model
4. Internal Order Model

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13


Field Sales Salary Model
Calculations
Overview Data is linked into the model for Working Days,
This model calculates Field Sales Salaries and Merit, and Benefits rate from the common
Fringe Benefits Expense. The model uses FTE assumptions.
counts and Average Salary Figures to project
the annual amounts for each version. This Salary is calculated as Number of Heads times
method is used for Sales Force only. Average Salary plus any Raise Amount. Salary is
broken down by Month based upon Working
Data Entry Days.
Data entry is completed by type of Field Sales
Employee. There are the following types: Links
Outbound Links from this model go to Monthly
1) Reps (Rep) Expense.
2) District managers (DM)
3) Regional Sales Directors (RSD)
4) Area Sales Directors (ASD)
5) Admin Assistants (Admin)
6) Other Types/Cohorts (Career Path)

Entry is required for the following variables:

1) Number of Heads
2) Average Salary
3) New Hire Start Month
4) Vacancy Factor

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14


Benefits Expense

Overview
Links
The Benefits Expense calculates the Allocated
Salary data from Salary and Headcount Model
Fringe benefits for each cost center. Fringe is
are linked into this model.
calculated as Salary Dollars time Fringe Rate.
Data Entry Expense.
There is no data entry to this Model.

Calculations
Salary Dollars as calculated in the Salary and
Headcount Model in Cognos. The Fringe Rate is
an estimate based upon analysis by the Finance
Staff.

Included in the Fringe rate:

1) Company Portion of Payroll Taxes
2) Company Portion of 401K and
Retirement Contributions
3) Company Portion of Medical, dental,
and other Insurance

Please contact Finance with further questions.

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15


Training Expense
Overview
Links
The Training Model calculates the training and
Position Name, Employee Name and Role are
conference costs by person by month. Training
linked from the Salary data from Salary and
Rate is based upon the Role of the Individual.
Headcount Model are linked into this model.
Each Role has an assumption.
Assumed Training is calculated based upon
Data Entry Role.
The default is for the model to spread the cost
evenly by month. The user can enter amounts
Expense.
in the Monthly Columns or can use the default.
Adjustments to the evenly spread amounts can
be made in the Adjustment column.

Calculations
Training Amounts are spread evenly unless the
user wants to make an adjustment.

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Travel Expense
Links
Overview Outbound Links from this model go to Monthly
The Travel Model accumulates Travel costs as a Expense.
monthly amount and then allocates the costs to
four (4) General Ledger Accounts. Travel
Monthly Rate is entered by user based upon
individual assumption.

Data Entry
There are the following lines for data entry:

1) Travel Baseline- enter amounts
2) Detail 1-5- enter amounts
3) Baseline Adjustment (dollar amount)
4) % Adjustment Judgment (Percentage)

Calculations
Travel Amounts entered are allocated to
General Ledger Accounts based upon
percentage assumption. There are Global
Assumptions that control the percentage split
by General Ledger Account.

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17


Contractor Expense

Overview
Links
The Contractor Model calculates professional
There are no Inbound Links that target this
services fees based upon assumptions.
model. Outbound Links from this model go to
Data Entry Monthly Expense.
Data entry is allowed in the following columns:

1) Name- this is free-form text
2) FTE Status- Select from the drop down
list: Full Time, Part Time or Temporary
3) Hourly rate- enter the amount per hour
4) Billable Percentage- Percentage of
monthly time that will be charged.
5) Start Month and End Month (optional)

Calculations
Base amounts are calculated as {Hourly Rate}
multiplied times 2088 times {Billable
Percentage}. Contractor Expense amounts are
spread based upon working days to each
month.

If a Start Date or End Date is used, the amounts
are spread only to applicable months based
upon the work days. The Base amount is
calculated same as above.

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7) Months April to March- enter amounts
Expense Input Model
Calculations
Overview There are no amount calculations. There is an
The Expense Input Model collects input by error check that occurs for the Required fields:
General Ledger Account. Up to 80 Lines of
If an amount is entered into the any of the
Input are allowed for each cost center. General
Months, it must have a GL Account and an
Ledger accounts can be used on multiple lines
“Ongoing or Project” entry. If either is missing,
to “sub-segment” the GL into projects.
an error message will display in the “Message”
Data Entry column and no amount will link to Monthly
Data entry is allowed in the following columns: Expense:

1) Internal Order (Optional)- free-form GL missing:
text
2) Description (Optional)- this is free-form
text
Ongoing or Project missing:
3) PO No. (Optional)- Free-form text for
purchase Order information
4) GL Account (Required)- Select from the
drop down of General Ledger Accounts Links
5) Ongoing or Project (Required)- Category There are no Inbound Links that target this
of expense: Project is one-time and model. Outbound Links from this model go to
Ongoing is recurring Monthly Expense.
6) Number of FTEs (Optional)- FTEs will be
gaited in same months are amounts.

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7903004 Allocations
IT Detail Build Up 7904003 Telcom Network
7904101 Cellular phone
Overview 7904104 Pagers
The IT Detail Build Up Model accumulates costs 7904105 Data Communication Fees
as a monthly amount for IT Related General 7904106 Voice Mail
Ledger Accounts. There are 80 Lines of detail 7904107 EDI Expenses
for each GL Account. A description can be 7904108 Data Center Operations
added to each line. 7905012 Outside professional/Consultant services
7905013 Outsourcing Services
Data Entry 7909090 Miscellaneous Operating Expense
There are the following GLs for data entry:
Calculations
7901016 Remote Connectivity There are no calculations in this model.
7902500 Computer Hardware Expense
7902501 Computer Software Expense Links
7902701 Hardware Maintenance Outbound Links from this model go to Monthly
7902702 Software Maintenance Expense.
7903002 Repairs and Maintenance

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If an amount is entered into the any of the
Internal Order Model Months, it must have a GL Account and an
“Ongoing or Project” entry. If either is missing,
Overview an error message will display in the “Message”
The Internal Order Model collects input by SAP column and no amount will link to Monthly
Project Code (Internal Order). Expense:

Data Entry GL missing:
Data entry is allowed in the following columns:

1) GL Account (Required)- Select from the
drop down of General Ledger Accounts Ongoing or Project missing:
2) Ongoing or Project (Required)- Category
of expense: Project is one-time and
Ongoing is recurring
3) Number of FTEs (Optional)- FTEs will be Links
gaited in same months are amounts. There are no Inbound Links that target this
4) Months April to March- enter amounts model. Outbound Links from this model go to
Monthly Expense.
Calculations
There are no amount calculations. There is an
error check that occurs for the Required fields:

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Data Entry
Marketing Planning Model Data entry is completed by Internal Order and
(External) entry is allowed in the following columns:

Overview 1) Months April to March- enter amounts
The Marketing Planning Model collects input by
Calculations
SAP Project Code (Internal Order) by Marketing
There are no amount calculations in this model.
Tactic by Product. The grouping of Tactic can be
customized per Model. Links
There are no Inbound Links that target this
Marketing has a separate application link (see
“Marketing Budget System” below):
Monthly Expense in the SG&A Expense Model
via Get Data (please see Get Data Overview for
more information).

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7. Base Salary- Current Salary unless equal to zero

Employee Detail- Salary and 8.
then New Hire
Bi-Weekly Hrs (Required)- from HRIS records or
Headcount Model Input
9. FTE- Calculation on “Bi-Weekly Hours”- 80 hours
Overview equals 1 FTE. Less than 80 hours then 0.5 FTE
10. Role (Required)- 1,2,3,4 or 5 from HRIS Records
The Employee Detail Model collects input for
or user input
current and planned Headcount. A data feed 11. Training- Calculation based upon Role
from HRIS populates the current roster of 12. New or Transfer (Optional)- Qualitative
employees by cost center. End user can enter information for headcount changes
additional information on employee changes. 13. New Hire Type (Optional)- Qualitative
information for headcount changes
14. New Hire Start Month - Required for New Hires
Only
15. Relocation (Optional)- Amounts for headcount
Data Entry changes
Data entry is allowed in the following columns: 16. Sign-On Bonus (Optional)- Amounts for
headcount changes
1. Position Name (Optional)- Title of the position
17. Recruitment (Optional)- Amounts for headcount
2. Position (Optional)- Position Number from HRIS
changes
records.
18. Merit %, Equity %, Other % , Raise % and Raise
3. Employee Name (Optional)- Name from HRIS
Month- Global Assumptions for merit
Records
19. Proration Adj- From HRIS records, proration of
4. Personnel No. (Optional)- From HRIS records
any merit for service time
5. Current Salary- Loaded from HRIS records
20. Separation Month- Required for headcount
6. New Hire Salary (Optional)- Entered by user
changes only. Last month of payroll for the
employee

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21. Apr-Mar, Budget Full Year- calculations based Links
upon inputs
There are Inbound Links that target this model with
Global Assumptions. Outbound Links from this
Calculations
model go to Monthly Expense (Salary Expense,
Salary Expense is calculated at the headcount level
Relocation Expense, Recruitment Expense), FTE
using the inputs and Global Assumptions. Total
Summary and Benefits Expense.
Salary amounts are gaited by month based upon
Workdays. Salary per month is adjusted for merit
based upon Global Assumptions for Raise.

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2) Months April to March- enter amounts
IT Project Model
Calculations
Overview There are amount calculations for Total Capital
The Internal Order Model collects input by SAP (9xxxxxx Accounts) and Total Expense (7xxxxxx
Project Code (Internal Order) for IT Projects. Accounts).

Data Entry Links
Data entry is allowed in the following columns: There are no Inbound Links that target this
1) GL Accounts Monthly Expense in the SG&A Expense Model
a. 9999997 Hardware Capital
via Get Data (please see Get Data Overview for
b. 7902500 Computer Hardware
c. 7902701 Hardware Maintenance more information).
d. 9999998 Software Capital
e. 7902501 Computer Software Expense
f. 7902702 Software Maintenance
g. 9999993 Development Capital
h. 7905012 Consulting
i. 7905013 Outsourced Services
j. 7302000 Training
k. 7903004 Allocations
l. 7909090 Miscellaneous Operating
Expense
m. 7904003 Telephone
n. 7904105 Data Communication Fees
o. 7901005 Air Travel
p. Total Capital
q. Total Expense

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