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D-11

Supply Chain Finance

A four-view finance pattern for governed working-capital ratios, balance-change reconciliation, cost-pool closure, and compatible customer-channel contribution.

There is a reference build of this pattern: the Supply Chain Finance dashboard in the showcase renders it over frozen, simulated data — not a live client system.

See the working independent synthetic example and the cash-to-cash definition.

What it answers

Which governed balances and flows determine financial cash-cycle days, what changed operating working capital, which service costs are supported by real allocation drivers, and what customer-channel contribution remains after compatible costs.

Inventory valuation and expense recognition remain accounting-profile decisions. IAS 2’s official summary explains that inventory cost is carried until related revenue recognition and that inventory cost formulas govern assigned cost; it does not prescribe this dashboard’s DIO formula.

The wireframe

Four-tab finance review

Accounting Period | Legal Entity | Cost Object when applicable
DIO | DSO | DPO | Cash Cycle
Operating Working Capital Change
Source Pool = Assigned + Unused Capacity + Unallocated + Adjustments + Residual
Revenue − Product Cost − Supported Service Cost
Filters
KPI / Metric
Primary Chart
Secondary Viz
Detail / Table

Layout basis

  • L-04 Tabbed Views preserves period, entity and cost-object context across Working Capital, Cash Drivers, Cost to Serve and Margin Drivers
  • L-03 Master-Detail / Drill-Down keeps every source amount, assigned amount, unused capacity, unallocated amount, adjustment and residual visible

The canonical model

fct_supply_chain_financePeriodic snapshot

Grain legal entity × accounting period for working capital; pool/object grains remain separate

Stored components

  • balance_amount_minor
  • flow_amount_minor
  • pool_amount_minor
  • driver_quantity
  • assigned_amount_minor

Foreign keys

  • dim_accounting_profile
  • dim_legal_entity
  • dim_cost_object
  • dim_allocation_profile
dim_accounting_profile
  • profile_id
  • version
  • balance_roles
  • flow_roles
  • averaging_method
  • day_convention

Pins the construction rather than treating all cash-cycle days as interchangeable.

dim_cost_object
  • cost_object_id
  • grain

Revenue, product cost and service cost must meet at this same supported grain.

dim_legal_entity
  • entity_id
  • currency_id

The shared grain for DIO, DSO, DPO and operating working capital.

dim_allocation_profile
  • profile_id
  • version
  • driver_id
  • capacity_basis
  • rate

Missing driver evidence remains unallocated instead of being forced into a customer.

Balance, flow, pool, driver, assignment, and cost-object grains remain separate until a declared construction joins them.

Measures and reconciliations

Supply Chain Finance constructions and additivity.
MeasureFormulaAdditivityNote
Financial DIOaverage eligible inventory value / COGS × period daysNon-additiveFinancial inventory value, not operational days of supply.
Cash conversion cycleDIO + DSO − DPONon-additiveComputed at one legal entity/profile/period; negative values remain valid.
Cost-pool closureassigned + unused capacity + unallocated + declared adjustments + rounding residual = source poolAdditiveEvery component is independently visible.
Customer-channel contributionrevenue − product cost − supported assigned service costAdditiveNot company net profit; unavailable where driver or grain evidence is missing.

Implementation notes

  • Reject mixed entity, currency, period, and cost-object grain unless an evidenced conversion or allocation profile is pinned.
  • Show opening/closing balance observations, averaging coverage, flow denominators, period days, revisions, and source references.
  • Keep noncash, FX, and reclassification effects explicit; a balance reduction is not realized cash.
  • Never force a missing driver into customer cost merely to close a pool. Unallocated and unused capacity remain visible.
  • Contribution at customer-channel grain is not company net profit.

Source and renderer mapping

Map legal entities, currencies, accounting periods, balance revisions, flow populations, allocation profiles, practical capacity and owned cost objects to the customer's sources. Retain source evidence and reconcile expected populations before publishing ratios or margins. Accounting policy and allocation approval belong to the customer; neither a source adapter nor a BI implementation is verified by this synthetic reference build.

Maintained by Summit Analytics, a supply chain analytics practice. The tools and references are free — the consulting is selective.

Part of the Summit Analytics reference library.

Work with the practice

Not affiliated with or endorsed by SAP, Oracle, Microsoft, or Infor. Product names are trademarks of their respective owners.