Alight Solutions
Abstract: Processes and procedures for building a revenue model including defining rollup structures,
using the Revenues and Markets & Products worksheets, and creating pricing,
conversion rate and revenue line items.
Abstract: After enrolling in a product offering, subscribers receive a service or product each time
period and make ongoing payments. These pay-as-you-go subscribers can then cancel
their subscription at a later period.
Abstract: After making an initial pre-payment, subscribers receive a service or product each time
period.
Abstract: Plan for secondary product revenue driven by the unit volume or dollar sales of another
product using a conversion rate.
Abstract: Plan for secondary product volumes driven by units of another product in a previous
time period.
Abstract: Plan revenue that is driven by the total revenue of a group it is included within (resolution
of a circular reference).
Abstract: Support for adjustments to standard pricing, forecasted as discounts and allowances,
which are reductions from Gross Sales.
Abstract: Plan headcount which is driven by revenue or customer activity levels.
Abstract: Plan headcount which is driven by a single condition, or step function of conditions.
Abstract: Plan headcount where heads from one line item drive heads for another line item based
on a ratio.
Abstract: Plan headcount which is driven by a calculation of hours underlying sales or production
requirements.
Abstract: Fringe benefits are driven from headcount by department; payroll taxes by salaries. Both
are calculated from composite rates built up from rate details.
Abstract: Plan for a variety of spending types which are driven by headcount.
Abstract: Plan for product cost of sales which are driven, and will vary, by unit sales at the product
or product group level.
Abstract: Plan for product cost of sales which are driven, and will vary, by a percentage of dollars
sales when underlying unit cost is not available.
Abstract: State and Federal income taxes are planned based on a composite tax rate for each taking
into account loss carryforward.
Abstract: Plan for expenses that are driven by conditions or thresholds of other items (e.g. revenue
levels, headcount levels, etc.)
Abstract: Use the Buildup tab to document and sum up the details of a payroll tax rate for computing
payroll taxes for each department.
Abstract: Accounts receivable are planned using any of several methods: Days AR, lookback and
time lagged.
Abstract: Plan for asset which are variable with headcount (e.g. as headcount increases over time,
asset spending increases, as well).
Abstract: Plan for bad debt reserve related to accounts receivables (from calculated bad debt expense).
Abstract: Depreciation is driven by assets and organized into categories by asset category and useful
life. Depreciation expense drives accumulated depreciation on the balance sheet.
Abstract: Plan for liability accruals where cash impacts are managed by specifying the paydown
pattern on the balance sheet.
Abstract: Accounts payables are planned by identifying the underlying AP expenses and then
managing the payables level using a days payable or other methods.
Abstract: EBITDA is a rough estimation of operating cash flow that excludes capital spending and
working capital requirements.
Abstract: Components of a capitalization table are structured: shares and price per shares by series;
percentage ownership; pre- and post-money valuations; EBITDA valuation; and
computation of shareholder value.
Abstract: Methods for computing typical activity measures: annualized sales per head, sales per
salesman, cost of customer acquisition and more.
Abstract: Methods for computing typical activity measures: annualized sales per head, sales per
salesman, cost of customer acquisition and more.
Abstract: Procedures for creating model subsets and then replicating them across multiple channels,
products, departments, etc. using copy and paste features. For example, replicating
line items for payroll taxes across all cost centers, or replicating a sales model across
multiple customer types.
Abstract: Procedures for planning salaries, expenses and revenues using 4-4-5 or other weekly
patterns for month end cutoffs in a 13 week fiscal quarter.
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