The Research Of Financial Rolling Forecast Model Based On SAP Standard Costing In R Company

In the theory of Beyond Budget which created by Fraser and Hope, enterprises'planning work was defined as a continuous process but not an annual activity. As a key part of enterprises'planning work, financial rolling forecast, disclosing various financial indicators in near future by forecasting enterprises'production and operation, has been accepted by a number of international companies. Beyond budget theory helps companies to be able to make rapid response to complicated environment, in which rolling forecast playing as a significant contributor. Through forecasting near future operating status, rolling forecast discloses potential risks and opportunities, to help management team to make decisions and judgements in advance, to support companies to make short and medium term improvement.This article is based on above points, by studying how R company build up and use its financial rolling forecast model, through new model's contribution on the improvement of forecast result, point out what does rolling forecast model mean to R company. Firstly, this article introduces the industry, production, operation and costing of R company, and the necessity and feasibility of using rolling forecast model. Secondly, this article introduces the calculation logic of SAP standard costing, and other financial related information flowing and calculation process in R company, points out the structure and how to design the rolling forecast. Meanwhile, this article introduces how does the model simulate SAP standard costing calculation to forecast near future financial indicators. The limitations of calculation in the model are also introduced. Finally, by comparing the accuracy of forecast result of old and new model, this article introduces the significance of rolling forecast model to R company's operation, points out the instructive role the model played to direct R company's operation.