This insight is part of the Insights Library that is available for the Insights and Action Plans feature. For information about how to use insights, see  Introduction to Insights. 

Description

Required data

• Trigger data:
  • Cost Source Master Data.Cost Center
  • Cost Source Master Data.Expense Type
• Modeled metric:
  • Cost
  • Budget
  • Forecast (optional)
  • CapEx (optional)
  • CapEx Budget (optional)
  • CapEx Forecast (optional)
• Evaluation period: 
  • Year-to-date, prior 6 periods, and current month (See Introduction to Insights for definitions.)
    
    

Explanations of the online summary for this insight

• Observation - This insight is triggered when the current month spend exceeds 5% of the average spend over the past 6 months for a given cost center that is over plan or budget.
  • Current Month Spend = Cost + CapEx
  • Total Spend YTD = YearToDate(Cost) + YearToDate(CapEx)
  • Total Budget YTD = YearToDate(Budget) + YearToDate(CapEx Budget)
  • Total Forecast YTD = YearToDate(Forecast) + YearToDate(CapEx Forecast)
  • Calculation: If(Current Month Spend > (Average Six Month Spend * 1.05)) AND If(Total Forecast YTD != 0, (Total Spend YTD > Total Forecast YTD),(Total Budget YTD > Total Budget YTD)) for a given cost center, then the cost center is counted in the observation.
• Chart - The chart shows the current month spend compared to the average six month spend for each cost center found in the observation. 
• Potential Benefit - Estimated savings is calculated as the total reduction that it would take to bring down the total spend for each cost center that triggered the insight below the 5% threshold. 
  • Current Month Spend - (Average Six Month Spend * 1.05), for all applications that trigger the insight. 
• Recommended Actions - Follow the recommendations in the insight summary to realize the savings represented as Potential Benefit. 
• Detail - The table lists the cost centers that trigger the insight and the associated spend.