INTEGRATION OF

DATA ANALYTICS
TO
FINANCIAL ACTIVITY
INTRODUCTION

Data analytics is the process of examining data sets in order to draw conclusions

about the information they contain, increasingly with the aid of specialized systems
and software. Data Analytics is a tool that helps process owners in the day to day
activity, in which data is recorded, processed, monitored and reported.

Analytics is innate in Accounting and Finance, in which the structured and

unstructured data are systemically recorded, analyzed, verified and summarized the
business and financial transactions, in which the results are reported. The critical
and crucial part of data analytics is from the recording, as it will establish accurate
data, presents a detailed report.

What is data?

Data is raw, unorganized facts that need to be processed. Data can be something
simple and seemingly random and useless until it is organized

What is information?

When data is processed, organized, structured or presented in a given context so as

to make it useful, it is called information.

What is Structured Data?

Structured data is data that has been organized into a formatted repository,
typically a database, so that its elements can be made addressable for more
effective processing and analysis. A data structure is a kind of repository that
organizes information for that purpose.

What is the Unstructured Data?

Unstructured data (or unstructured information) is information that either does not
have a pre-defined data model or is not organized in a pre-defined manner.
Unstructured information is typically text-heavy but may contain data such as
dates, numbers, and facts as well.
OBJECTIVES

At the end of the discussion and awareness, employees are expected to:

 Understand the concept of data analysis

 Know how to create accurate and effective analytic models
 Know how to incorporate data analysis in financial activity.
 Recognize opportunities, trends, and advantages of making use of data
analysis technology.

BENEFITS

Expected results from the Data Analytics

 Greater Efficiency on Data Gathering

 Reporting

 Better Informed Decisions

Greater Efficiency on Data Gathering

1. Data Gathering should focus only on the necessary data in which are
recorded in the system.
2. Quickly identifies trends (such as errors, lapses, gaps, etc.)

Reporting

1. Reports become standard due to efficient data gathering.

2. Results are easily reflected in the reports.

Better Informed Decisions

1. In making decisions, data is always easily available to support such

decisions.
2. Decisions are on merits.
TYPES OF DATA ANALYTICS

Data Analytics process may vary depending on the need of the process
owner, the intent and use of the data, and the technical expertise on system
or technology.

The following are types of data analysis:

1. Descriptive Analysis - reports past events to characterize and summarize

what happened.

Example: Manufacturing Industry which uses descriptive analytics to

improve quality boosts output and reduces waste.

2. Diagnostic Analysis - reports details and provide insight into why certain
trends or specific occurred.

Example: Distribution Company in which diagnostic analytics is used to cut

data into product categories, geographical regions or consumers.

3. Predictive Analysis – allows users to extract information from large

volumes of existing data, apply certain assumptions, and draw correlations
to predict future outcomes and trends.

Example: A Retailer company collecting data on individual buying trends and

purchases and then using predictive analytics to improve sales strategies,
pricing models, and distribution.

4. Prescriptive Analysis - features sophisticated algorithms to analyze

potential decisions, as it defines a potential connection between internal
forecast and external data, to impact each decision.

Example: A company that uses prescriptive analysis to compound questions /

macro-analysis for strategic forecasting and planning.
DATA ANALYTICS PROCESS

1. Data Discussion – review the objective of data analysis and what it measures.

2. Visual Representation – 0rganize and summarize data.

3. Observation – discuss and document patterns.

4. Forming Hypothesis – suggest the reason for patterns observed in data.

5. Action Task – identify possible additional data needed, steps to improve patterns,
and/or ways to build on positive trends.
PRACTICAL APPROACH OF DEVELOPING ANALYTICS (DATA MODELLING)

1. Identify your Department/Function objectives in creating a Data Model

2. Establish strategic objectives and measure of performance (KPI)

3. Identify drivers of performance and measures (KPD)

4. Establish Correlations

5. Develop Analytics (Data Model)

INTEGRATION OF DATA ANALYTICS TO FINANCIAL ACTIVITY

1. Data Gathering and Data Collection (Application)

2. Integration to Data Model (Application)
3. Monitoring
4. Review
5. Reconciliation
6. Reporting, backed-up with data analysis
7. Action Plans
APPLIED DATA ANALYTICS TO FINANCIAL ACTIVITY

A process which efficiently use of data in the day to day financial activity,
which integrates data analytics to better understand the data and its
correlation to one another and come up a comprehensive report and make
necessary action plans.
EXAMPLE OF DATA ANALYTICS

1. GS and GK Model

///
GROSS SALES AND GK MONITORING REPORT

PERIOD 1‐Feb 7‐Feb BRANCH: BATANGAS

A
B

Gross Sales Gross Kita

₱14,000,000.00 ₱1,200,000.00
₱12,000,000.00 ₱1,000,000.00
₱10,000,000.00 ₱800,000.00
Axis Title

Axis Title

₱8,000,000.00
₱600,000.00
₱6,000,000.00
₱400,000.00
₱4,000,000.00
₱2,000,000.00 ₱200,000.00
₱‐
₱‐
1 2 3 4 1 2 3 4

Batangas Performance
₱1,200,000.00
₱1,000,000.00

₱800,000.00

₱600,000.00

₱400,000.00
₱200,000.00
₱‐

1 2 3 4
 ANNEX 1 - GKR

PERIOD 1-Feb 7-Feb BRANCH: ILO-ILO

DATE DATE CUSTOMER NAME DR# SI# WO#PO# GROSS SALES GROSS PUHUNAN GROSS KITA GK%
(NET OF DISCOUNT)
1 12/2/2019 SIGAYA BUILDERS ILODR02476
AND CONSTRUCTIONILOSI1822
SERVICES ILOW1824 ₱ 128,197.00 ₱ 120,357.40 ₱ 7,839.60 6%
2 12/3/2019 7 MANREBO CONSTRUCTION
ILODR02477 ILOSI1788 ILOW1825 ₱ 24,085.00 ₱ 23,053.40 ₱ 1,031.60 4%
3 12/3/2019 7 MANREBO CONSTRUCTION
ILODR02478 DELIVERY CHARGE
4 12/3/2019 R.A. REBALADO & ILODR02479
ASSOCIATES ILOSI1792 ILO1575 ₱ 231,978.00 ₱ 224,094.00 ₱ 7,884.00 3%
5 12/3/2019 R.A. REBALADO &ILODR02480
ASSOCIATESDC DELIVERY CHARGE ₱ -
6 12/3/2019 G.UY CONSTRUCTIONILODR02481 ILOSI1791 ILO4087 ₱ 92,000.00 ₱ 85,285.00 ₱ 6,715.00 7%
7 12/6/2019 FLT ENTERPRISES ILODR02485 ILOSI1800 ILO1585;ILOW1827 ₱ 153,600.00 ₱ 142,241.00 ₱ 11,359.00 7%
8 12/6/2019 ACM LANDHOLDINGS,ILODR02484
INC. ILOSI1801 ILO1584 ₱ 416,000.00 ₱ 396,000.00 ₱ 20,000.00 5%
9 12/6/2019 ROLYN GUMBAO ILODR02483 ILOW1826 ₱ 13,200.00 ₱ 12,807.40 ₱ 392.60 3%
10 12/6/2019 TIBIAO ANTIQUE NKILODR02486
ENTERPRISE INC. ILOSI1820 ILOW1828 ₱ 1,324,800.00 ₱ 1,143,078.50 ₱ 181,721.50 14%
11 12/6/2019 ACM LANDHOLDINGS,ILODR02482
INC. ILOSI1798 ILO1580 ₱ 420,000.00 ₱ 402,000.00 ₱ 18,000.00 4%
12 12/7/2019 BENJAMIN L.DULLAILODR02487 ILOSI1810 ILO4958,ILOW2215 ₱ 795,362.00 ₱ 741,088.11 ₱ 54,273.89 7%
13 12/7/2019 BENJAMIN L.DULLA ILODR02488 DELIVERY CHARGE
14 12/10/2019 NID CONSTRUCTION ILODR02491
MARKETING ILOSI1802 ILO1586 ₱ 109,200.00 ₱ 103,500.00 ₱ 5,700.00 5%
15 12/10/2019 KENBE CONSTRUCTION
ILODR02493 XTFCS FREIGHT CHARGE
16 12/10/2019 TERESITA GUSTILOILODR02494 ILOW1830 ₱ 9,600.00 ₱ 9,371.20 ₱ 228.80 2%
17 12/10/2019 TIBIAO ANTIQUE NKILODR02495
ENTERPRISE INC. CUTTING CHARGE ₱ 10,000.00 ₱ 10,000.00 100%
18 12/10/2019 ROLYN GUMBAO ILODR02489 ILOW1829 ₱ 220.00 ₱ 200.00 ₱ 20.00 9%
19 12/10/2019 KENBE CONSTRUCTION
ILODR02492 ILOSI1812 ILO24290 ₱ 1,168,690.00 ₱ 923,419.00 ₱ 245,271.00 21%
20 12/11/2019 IAN VAL BALLEZA ILODR02498 ILOW1832 ₱ 30,400.00 ₱ 28,669.17 ₱ 1,730.83 6%
21 12/11/2019 KARKONZ BUILDERSILODR02499
& CONSULTANCY ILOSI1813 ILO24363,ILO24364 ₱ 1,868,250.00 ₱ 1,666,249.60 ₱ 202,000.40 11%
22 12/11/2019 KARKONZ BUILDERSILODR02500
& CONSULTANCY
TC TRUCKING CHARGE ₱ 70,000.00 ₱ 70,000.00 100%
23 12/11/2019 RONALD TAWAS ILODR02496 ILOW1831 ₱ 5,400.00 ₱ 5,115.00 ₱ 285.00 5%
24 12/12/2019 GOLDEN REPUBLICILODR02502
CONSTRUCTION ILOSI1811 ILO4979 ₱ 1,238,400.00 ₱ 1,180,800.00 ₱ 57,600.00 5%
25 12/12/2019 GOLDEN REPUBLICILODR02503
CONSTRUCTION
TC TRUCKING CHARGE ₱ 64,000.00 ₱ 64,000.00 100%
26 12/12/2019 RP BUILDERS ILODR02504 ILOSI1804 ILO1589 ₱ 261,450.00 ₱ 247,800.00 ₱ 13,650.00 5%
27 12/13/2019 7 MANREBO CONSTRUCTION
ILODR02505 ILOSI1803 ILOW1833 ₱ 10,840.00 ₱ 10,405.80 ₱ 434.20 4%
28 12/13/2019 7 MANREBO CONSTRUCTION
ILODR02506 DC DELIVERY CHARGE ₱ -
29 12/13/2019 ALLNEX CONSTRUCTION
ILODR02507
& DEVELOPMENT CORP. ILOW1834 ₱ 8,950.00 ₱ 8,443.50 ₱ 506.50 6%
30 12/13/2019 ALLNEX CONSTRUCTION
ILODR02508
& DEVELOPMENT CORP. ILOW1835 ₱ 4,560.00 ₱ 4,290.15 ₱ 269.85 6%
31 12/16/2019 RICHMOND EVASCO ILODR02512 ILOW1840 ₱ 22,114.00 ₱ 21,167.26 ₱ 946.74 4%
32 12/16/2019 RICHMOND EVASCO ILODR02512 DELIVERY CHARGE
33 12/16/2019 CONTE BUILDERS &ILODR02511
CONSTRUCTION SUPPLY
ILOSI1805 ILOW1839 ₱ 19,550.00 ₱ 18,283.00 ₱ 1,267.00 6%
34 12/16/2019 IAN VAL BALLEZA ILODR02513 ILOW1841 ₱ 12,480.00 ₱ 11,868.48 ₱ 611.52 5%
35 12/16/2019 IAN VAL BALLEZA ILODR02509 ILOW1837 ₱ 19,740.00 ₱ 18,801.46 ₱ 938.54 5%
36 12/16/2019 opung lastimuso ILODR02510
37 12/17/2019 ALLNEX CONSTRUCTION
ILODR02515
& DEVELOPMENT
ILOSI1806
CORP. ILOW1842 ₱ 12,300.00 ₱ 11,714.00 ₱ 586.00 5%
38 12/17/2019 BINJO CONSTRUCTION
ILODR02521
& SUPPLY ILOSI1807 ILO1347 ₱ 2,770.00 ₱ 2,612.00 ₱ 158.00 6%
39 12/17/2019 SIGAYA BUILDERS ILODR02522
AND CONSTRUCTIONILOSI1818
SERVICES ILOW1844 ₱ 30,760.00 ₱ 29,217.18 ₱ 1,542.82 5%
40 12/19/2019 SPS BUILDERS ILODR02523 ILOSI1808 ILOW1845,ILO1597 ₱ 94,400.00 ₱ 87,978.50 ₱ 6,421.50 7%
41 12/19/2019 SPS BUILDERS ILODR02524 DC DELIVERY CHARGE
42 12/19/2019 SIGAYA BUILDERS ILODR02525
AND CONSTRUCTIONILOSI1821
SERVICES ILOW1846 ₱ 11,513.00 ₱ 10,734.93 ₱ 778.07 7%
43 12/20/2019 ILOILO ASIAN LUMBER
ILODR02526
& HARDWARE ILOSI1809 ILOW1847 ₱ 237,000.00 ₱ 227,440.00 ₱ 9,560.00 4%
44 12/20/2019 NALID'S CONSTRUCTION
ILODR02530 ILOW1848 ₱ 1,500.00 ₱ 1,384.10 ₱ 115.90 8%

Total ₱ 8,923,309.00 ₱ 7,919,469.14 ₱ 1,003,839.86 12%

Notes: SI or DR shall refer to those delivered items. Undelivered items shall not be included to the report. Further, SI/DR for Delivery or Freight Charge
shall not be included as well.
 ANNEX 2 - PSA

PERIOD 1-Feb 7-Feb BRANCH: BATANGAS

TARGET GK ACTUAL % GK PRODUCTS CATEGORY % IN TOTAL % GK PER PRODUCT REMARKS

PER ITEM SALES CATEGORY

10% 11% BARS 36.98% 4.1%

8% 12% SheetPile A 22.73% 2.7%
12% 12% Beams B 40.28% 4.6%
12% 0% Pipes C 0.00% 0.0%
8% Purlins D 0.00% 0.0%
Plates E 0.00% 0.0%
Tubes F 0.00% 0.0%
Hardware G 0.00% 0.0%
Other H 0.00%
6% 12% TOTAL I 100.00% 11%

SALES BY ITEM
CATEGO
DATE CUSTOMER NAME SI / DR # AMOUNT GROSS KITA GK PER ITEM% GK PER CATEGORY RY
12/17/2019 ALLNEX CONSTRUCTION & DEVELOPMENT CORP. ILOSI1818 1,000,000.00 120,000.00 12% A
ALLNEX CONSTRUCTION & DEVELOPMENT CORP. ILOSI1818 2,300,000.00 230,000.00 10% A
TOTAL CATEGORY A 3,300,000.00 350,000.00 22% 11% A

12/17/2019 BINJO CONSTRUCTION & SUPPLY ₱ 277,000.00 33,240.00 12% B

12/17/2019 SIGAYA BUILDERS AND CONSTRUCTION SERVICES ₱ 807,600.00 96,912.00 12% B
12/17/2019 SPS BUILDERS ₱ 944,000.00 113,280.00 12% B
TOTAL CATEGORY B ₱ 2,028,600.00 ₱ 243,432.00 36% 12% B
12/17/2019 SIGAYA BUILDERS AND CONSTRUCTION SERVICES ₱ 1,151,300.00 138,156.00 12% C
12/17/2019 ILOILO ASIAN LUMBER & HARDWARE ₱ 943,409.00 113,209.08 12% C
12/17/2019 NALID'S CONSTRUCTION ₱ 1,500,000.00 159,042.78 11% C
TOTAL CATEGORY B ₱ 3,594,709.00 ₱ 410,407.86 35% 12% C

GRAND TOTAL 8,923,309.00 1,003,839.86 93% 12%

 BASED ON SRP
SEQ# ITEMS CATEGORY MARK-UP AS PER SRP AVERAGE PER
SAMPLE SALES PROGRAM TO MEET THE 9% GK
CATEGORY
1 DRB A 6% Ave GK Products Category % in Total Sales GK% in Total Sales
2 AB (Angle Bar) A 10% 10% BARS A 50.04% 5.0%
3 CB (Channel Bar) A 8% 8% SheetPile B 18.45% 1.5%
4 FB (Flat Bar) A 10% 12% Beams C 10.88% 1.3%
5 PRB (Plain Round Bar) A 8% 12% Pipes D 5.25% 0.6%
6 SB (Square Bar) A 10% 8% Purlins E 3.26% 0.3%
7 ZB (Z Bar) A 10% 11% Plates F 3.12% 0.3%
8 IB (I Bar) A 8% 7% Tubes G 2.30% 0.2%
9 S SAB (Stainless Angle Bar) A 20% 10% 14% Hardware H 2.11% 0.3%
10 ShP (Sheet Pile) B 8% 8% Other I 4.59%
11 WF (Wide Flange) C 12% 12% 9% TOTAL 100.00% 9%
12 BIPL (Black Iron Piple Local) D 12%
13 GIPL (Galvanized Iron Pipe Local) D 8%
14 BIPImp (BI Pipe Imported) D 20%
15 GIPImp (GI Pipe Imported) D 8% 12%
16 CP (Purlins) E 8% 8%
17 MSP1 (MS Plate 4 x 8) F 10%
18 MSP4 (MS Plate 6 x 20) F 10%
19 GIS (GI Sheet) F 15%
20 BI Sheet F 12%
21 MSP2 (MS Plate 4 x 20) F 10%
22 MSP5 (MS Plate 8 x 20) F 10%
23 MSP3 (MSP 5 x 20) F 10% 11%
24 ST (Square Tube) G 15%
25 BIT (BI Tube) G 8%
26 RT (Rectangular Tube) G 15%
27 BT (Boiler Tube) G 10% 7%
28 Fittings H 20%
29 ConP(Cement) H 5%
30 WR (Welding Rod) H 8%
31 PW (Plywood) H 8%
32 CWN (Common Wire Nails) H 10%
33 SSSH (Stainless Steel Shafting) H 10%
34 FTB (Full Threaded Bar) H 12%
35 TB ( Turnbuckle) H 10%
36 Nails H 15% 14%
37 WWM (Welded Wire Mesh) I 15%
38 SS (Stainless Steel) I 15%
39 Total Hardware I 15%
40 Wires I 20%
41 S SHT (Stainless Steel Sheet) I 10%
42 AlumP (Aluminum Products) I 15%
43 CRS (Cold Rolled Shafting) I 10%
44 S SFB (Stainless Flat Bar) I 20%
45 TS (Tool Steel) I 12%
46 SSST (Stainless Square Tube) I 12%
47 Boiler I 10% 22%
12% 12%
Example 2:

Activities to
Objectives Achieve the Drivers Data Model
Plans
A. R EC OGNITION OF F IXED AS S ETS
1. Do c um e nta tio n
1. C he c k R e c o rds a nd
1. R e c o gnitio n o f Ac quire d As s e ts R e quire m e nt (Inte rna l
Do c um e nts
a nd Exte rna l S o urc e )
1.1. As s e t Ac c o unta bility 1. R e c o rding a nd
2. Ve rific a tio n a nd
1.2 C us to dia ns hip 2. R e c o rde d vs Ac tua l R e c o gnitio n (S upplie r,
R e c o nc ilia tio n o f As s e ts
1.3 Lo c a tio n M o de , Te rm s , Kinds )
1.4 Da te Ac quire d 3. R e la y o n Ac c o unting
1.5. De pre c ia tio n M e tho d 3. R e c o gnitio n
P o lic y a nd P ro c e dure s
1.6. Wa rra nty P e rio d

2. La ps ing S c he dule o f F ixe d As s e ts

(As s e t R e c o gnitio n a nd De pre c ia tio n)

2.1. P ro pe r R e c o rding o f Ac quire d As s e ts 1. C he c k the

R e c o rding, Is s ua nc e o f
Ac c o unta ility F o rm s a nd
2.2. Tra ns fe r o f As s e ts
a ppro va ls
2.3. Dis po s a l R e c o rds
2. C he c k R e c o rding,
Adjus tm e nt
a nd R e c o nc ilia tio n
1 . S ubm is s io n, c o ntro l
o f Inte rna l S o urc e Do c s 1. As s e t M a na ge m e nt
(Ac c o unta bilty, Turno ve r,
Tra ns fe r, Dis po s a l a nd
3. S ubm is s io n a nd M o nito ring)
c o ntro l o f Inte rna l
Do c s . Exte rna l S o urc e
Do c s
ACTIVITY

Group 1 (CI, Credit and Collection and Invoicing)

Group 2 (Payables, Billing, Inventory)

Group 3 (Budget and Funding)

Based on Group of Functions

1. Identify your objectives in creating a Data Model

2. Establish strategic objectives and measure of performance (KPI)

3. Identify drivers of performance and measures. (KPD)

4. Establish Correlations