Finance4U™ Regulatory Reporting

Situation

Utilities have unique and complex financial reporting requirements, including regulatory and rate case challenges.

Challenges

Regulatory reports are typically created manually, using Microsoft Excel, based on disparate financial plans and systems, which is time consuming and results in data  duplication  and  the  need  for  increased  data validation.

When regulators  have  questions,  it  is  difficult  to examine  specific  figures  and  assumptions  which leads to cost flow tracing complexities.

Solution Overview

The Utegration Finance4U™ Regulatory Reporting Solution reduces the effort to create a rate case and respond to regulatory and intervener questions using enhanced traceability  functionality.

Value Drivers

Real-time

Real-time regulatory account derivation and regulatory reporting. No reconciliation is needed between a regulatory ledger and GAAP ledger saving regulatory finance teams significant time and effort.

 

Integration

Integration between planning and actual financial data that creates a unified financial and regulatory planning and reporting solution. One solution, lower cost.

 

Custom hierarchies

Ability to create custom regulatory account hierarchies to facilitate reporting and real-time correction of account derivation through the solution’s innovative SAP Fiori-based interface, helping you better understand your financial positions.

 

Ready-to-use

Ready-to-use reporting and KPI contents for the utility industry. Leverage user-friendly front-end and familiarity of Microsoft Office workbooks for ease of use. Spend less time training your staff on a new solution and more time deriving value from robust analytics.

Process Innovation

Realtime cost flow tracing

  • Cost flow tracing logic covers both O&M and capital. In addition, the regulatory view of lower level cost objects can be achieved

Bidirectional cost flow tracing

  • Backward tracing from receiving cost center or asset all the way to the original cost center
  • Forward tracing from original cost center to the final receiving cost center or asset
  • Ready to use back-end tracing logic and front-end report templates, which is not provided in the standard SAP FI-CO module

Real-time cost flow tracing shows all the detailed origins and purposes of costs broken down by: vendor, invoice number, personnel, materials, G/L account, regulatory account, etc.

Technology Innovation

  • Adds utility-specific financial reporting to SAP, utilizing the innovations in the SAP S/4HANA platform
  • Automates the regulatory reporting process, so staff can populate, verify and file reports 50 – 75% faster
  • For regulatory reporting, reduces the effort to create a rate case and respond to regulatory and intervener questions using enhanced traceability functionality
  • Provides the ability to perform complex scenario analysis (“what-if”) for rate case design and planning

Finance4U is easily deployed in any standard configuration of SAP S/4HANA, as the code base is within the core. SAP Central Finance (on premise or cloud) and full SAP S/4HANA (on premise or cloud) deployments are supported.

Our Reporting Package

Finance4U includes several pre-built reports based on the SAP Unified Journal entry table, including real-time regulatory account derivation:

  • GAAP Balance Sheet and Income Statement
  • FERC Balance Sheet and Income Statement
  • Statement of Equity
  • Statement of Retained Earnings
  • Cost Flow Tracing Report
  • Ad-hoc analysis template for all GAAP/FERC data
  • Custom report capable