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FP&A FOUNDATIONAL COURSE
🔍Notes
FP&A Foundational Course : My Personal
(Real. Raw. Unfiltered. Just how learning should be.)
💼 FP&A Overview
📌 FP&A = Financial Planning & Analysis
The function that sits closest to the CFO because it provides the insights that
guide strategic decisions.
FP&A is not just about numbers. It's about asking:
“Why did this happen, and what should we do next?”
📊 Core Areas of FP&A
1. Budgeting – Annual financial planning & commitment
FP&A FOUNDATIONAL COURSE 1
2. Forecasting – Rolling estimates based on actuals
3. Variance Analysis – Understanding deviations
4. Profitability Analysis – Ensuring every unit generates value
🧠 Traits of Successful FP&A Professionals
✅ Business Acumen
✅ Analytical Skills
✅ Cross-functional Collaboration
✅ Data & Tech Literacy (Excel, BI tools, ERP systems)
📝 Budgeting—"Plan" for the Year"
📌 Purpose:
Set direction & focus
Control spending
Hold management accountable
Manage cash flows
📌 Role of FP&A:
Work with business teams (Revenue, Margins, Overheads, Clients)
Analyze past trends, question movements
Prepare & finalize budgets with leadership (GM, VP, CFO, etc.)
Upload approved budget in ERP/BI tools
📌 Tools Used:
ERP – SAP, Oracle, Navision
BI – Anaplan, Prevero, Hyperion, Infor
🔁 Forecasting – "Where are we headed?"
FP&A FOUNDATIONAL COURSE 2
📌 Purpose:
Course correction (spending & sales)
Manage cash flow
Adjust strategy in real-time
📌 Role of FP&A:
Collaborate cross-functionally for updates
Track direction and risks
Suggest actions (e.g., reduce hiring if sales slow down)
Update rolling forecast in systems
📉 Variance Analysis – "Plan vs. Reality"
📌 Types:
Plan vs. Actual
Forecast vs. Actual
📌 Why it matters:
Explain deviations
Improve forecasting accuracy
Enable timely action (Plan B!)
Enhance cash flow predictability
📌 Deliverables:
Management commentaries
Dashboards, Flash reports
MOM / YOY / QOQ comparisons
📌 Tools for Analysis:
ERP: SAP, Oracle, Navision
BI: Anaplan, Hyperion, Prevero
FP&A FOUNDATIONAL COURSE 3
Presentation: Excel, PowerPoint
Visualization: Power BI, Tableau
💰 Profitability Analysis – "What’s actually profitable?"
📌 Goal:
Ensure every product, client, region, and project is contributing to profits.
📌 Breakdowns:
Product / Service
Region / Branch
Customer / Project
Distributor / Retailer
📌 How?
Use data points like cost center, profit center, branch code, customer code, etc.
💡 Recharges & Allocations – "True Cost Reflection"
📌 Recharges = Recovering costs incurred on behalf of another unit
📌 Allocations = Apportioning overheads (e.g., management/support costs)
📌 Why important?
Show true profitability of units
Decide fair performance incentives
Recover shared/corporate costs fairly
🏗 FP&A Structure
📌 Organizational Levels:
Regional
Strategic Business Units (SBU)
FP&A FOUNDATIONAL COURSE 4
Global Shared Services
Project / Client-based
📌 Stakeholders:
FP&A interacts with HR, Sales, Biz Dev, Ops, Legal, Tax, and more to collect data
and provide insights.
📌 Industry KPIs:
Tailored to business model (e.g., churn rate, unit economics, gross margin, etc.)
🧭 The FP&A Mantra
“Don’t just report numbers—explain, influence, and improve
them.”
📌 Be Insightful
📌 Be Relational
📌 Be Politically Aware
📌 Stick to the Fundamentals
💼 Pro Tip for FP&A Job Seekers
🔍 Apply for the role, not the keyword.
FP&A titles vary—look for JD’s mentioning planning, forecasting, analysis, or
reporting responsibilities
FP&A FOUNDATIONAL COURSE 5
FP&A FOUNDATIONAL COURSE 6
