Department Planning

Standardized and tailored sub-plans – department planning helps control the finer details of your operational activities and is integrated in financial planning to enable monetary valuations.

Why is departmental planning needed

Integrated financial planning is used by CFOs and financial managers to manage a company with foresight using financial key figures, to identify trends and to initiate measures to correct targets. Departmental planning is an important component of integrated financial planning. It details and refines the planning of individual departments. The planning results of individual departments are included in integrated financial planning as aggregated key figures. An important aspect of both integrated financial planning and departmental planning is the interdependence of the plans and thus the consistency of the financial ratios. Examples of departmental planning are given below. It should be mentioned here that the descriptions are intended to give you an initial insight, but do not claim to be complete. If you have any further questions, please do not hesitate to contact us. We will advise you with passion.


Which Subjects are included

Cost center planning

Cost center planning helps to create transparency and an overview of the costs incurred within a company and enables costs to be controlled and managed more efficiently. In cost center planning, an internal view of the operational value chain takes place. With the help of secondary costs, internal flows of services and goods can be planned. With the help of allocations, administrative cost centers are relieved and revenue-generating cost centers are debited. These two methods also ensure in planning terms that internal company departments operate cost-efficiently.

Personnel cost planning

Personnel cost planning is the planning of costs resulting from the workforce structure of a company. Personnel costs often account for a large proportion of a company's total cost pool. For this reason, personnel cost planning is one of the most important departmental planning activities. Depending on the industry, a distinction can be made here between collectively agreed salaries, noncollectively agreed salaries and wages. Further objects of consideration in personnel cost planning are country-specific differences, salary bands, the type of employment relationship, cost centers, training costs, recruiting costs and, last but not least, ancillary wage costs. In terms of planning, of course, entries and exits are considered at certain points in time and for various reasons.

Sales Planning

Sales planning involves developing and implementing a strategy to sell products or services. It is a detailed analysis of the sales goals and strategies a company will pursue to generate more sales. It may also include a review of sales practices, customer service, and other factors that impact the success of the business. Sales planning can also be a tool for entering new markets, developing new products, and retaining existing customers. Sales planning perspectives include regions, sales managers, products and product groups, sales branches, and metrics down to the contribution margin at the product level (volumes, prices, discounts, rebates, variable and fixed costs).

Production Planning

Production planning is the process of planning the production of goods and services, including determining the required resources, schedule, and costs. It also includes planning production in terms of market demand and inventory. The process of production planning begins with determining the customer's requirements and what type of product or service is needed to meet those requirements. Planners then determine the quantity and time frame in which the products or services must be produced. Next, the resources and costs required to produce the products are determined. The final step is to monitor and control the process to ensure that the products or services are produced in a timely and cost-effective manner.Perspectives of consideration in production planning can be resources, production sites, halls or roads, the (part-product), required personnel capacities, energy use as well as the use of raw materials, parts or semi-finished products. The perspectives in production planning can vary greatly depending on the industry.

Capacity Planning

Capacity planning is a strategic process used to identify, understand, and manage an organization's existing resources. Capacity planning involves analyzing operational processes to optimally deploy resources to meet production needs or the demand for needed service. This process includes determining the number of employees, machines, buildings, materials, expenses, and other resources needed to provide a particular product or service. Capacity planning can also be used to develop a production strategy that reduces costs and increases efficiency.


The treasury department in a company traditionally deals with the management of cash flows, ensuring solvency, drawing on credit lines, optimizing liquidity, etc. The planning component in this department comprises the forward-looking development of incoming and outgoing cash flows and the resulting aggregated account balance.The planning component in this specialist area comprises the forward-looking development of incoming and outgoing cash flows and the resulting aggregated account balance of the company.A distinction is made here between three leading perspectives: the past (cash position), the near future (deterministic forecast) and the distant future (probabilistic forecast). Of particular interest for planning is the probabilistic forecast, which can be implemented with modern approaches of AI / Machine Learning.Treasury cash flow planning can be seen as a parallel branch to traditional finance cash flow planning. In the optimal case, future assumptions regarding cash flow are reconciled between both departments and the forecast is brought into line.

Integrated financial planning (balance sheet, cash flow, income statement)

--> Is not a subplan. The results of all sub-plans converge here.Integrated financial planning focuses on the company result (income statement), the company assets (balance sheet) and the payment flows (cash flow). There are interdependencies and value flows between these three plans, which must be mapped in an integrated financial plan so that they are consistent with each other. An example of a value flow is corporate taxes. These depend on the level of corporate earnings before taxes. Corporate taxes are also reflected in the cash flow calculation at the same time, as they are initially non-cash. However, these corporate taxes can also be found as provisions on the liabilities side of the balance sheet.

demand-oriented planning modules

By planning resources – such as quantities, FTE or capacities – and monetary contributions, you obtain a comprehensible and consistent basis for controlling in the department as well as across departments.


adequate planning granularity

Increase planning quality and effectiveness in the planning process

consistent horizontal and vertical integration

Consideration of interdependencies between sub-plans and time dependencies between operational and strategic objectives

focus on sub-plans that have an impact on results

Standardized and customized solutions

Added value of departmental planning

Departmental planning is created in the company because there is a need for forward-looking management. Here, however, it is important to ensure horizontal (to neighboring departments) and vertical (to Integrated Financial Planning) integration of departmental planning in order to keep the overall corporate planning process as efficient as possible.
The integration of departmental planning results in the following advantages for a company:


Improving the quality of planning

Detailing the overall plan with the help of departmental planning increases the informative value and plausibility of the overall plan


Single point of truth

Centralized, coordinated and consistent sub-plans that culminate in the overall plan


Transparency & speed

Transparency about where and how data is created. Speed through an orderly, in the optimal case system-supported, planning process

Our offer for you

We support you in taking an integrated view of the various specialist areas and transferring them as upstream subplanning to financial planning as monetary value planning.

Get in touch with us!

Patrick Wessel Manager
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