Price Volume Mix (PVM) Analysis using Enterprise Performance Management (EPM) Planning Cloud
Watch the Customer Connect recording presented by RajeshKumar UmaShankar and Muthu Ranganathan. A copy of the presentation can be downloaded from this link, too.
This session went over how you can model Price Volume Mix (PVM) analysis in EPM with complete insight into the impact of changes in margin by comparing Prior period vs Current period as well as Plan vs Actual scenarios. It also covered how you can do multi-dimensional analysis on revenue, cost of goods sold and product mix that caused the margin variance, thereby enabling management with improved operational decision making.
The following topics are presented:
- PVM Analysis Overview
- PVM Analysis in EPM Cloud
- Demo
- Implementation Steps
Price Volume Mix (PVM) Analysis
Also known as “Margin Movement Analysis” for Actual comparisons
PVM measures the impact of Price, Volume, Mix on total variances
- Actuals across year/periods
- Plan vs. Actuals
- Forecast (adj. plans) vs. Actuals
Types of Variances
- Price : Difference in Price on Actual Volumes
- Quantity: Difference in Volumes on Plan Price
- Volume : Difference in Actual Volumes @ Plan Mix and Plan Volumes on Plan Price
- Mix: Difference in Actual Volumes and Actual Volumes @ Plan Mix on Plan Price
- FX : Difference in FX Rates on Actual Revenue /COGS
