“Quickborn Consulting respected all the functional, technical and time objectives and succeeded to support our organization transformation with a very limited impact on the day to day business workload.” - Laurent Singer, Former IT Director of Galeries Lafayette

Stock depreciation planning solution

Retailers in France face a common accounting challenge related to the calculation of depreciation of stock assets due to a complex set of accounting rules and applicable laws. Depreciation calculation takes considerable effort and has a high degree of potential for calculation error due to the lack of standardized and systematic approach deployed by retailer organizations.

The Quickborn DEPREC is a fully automated RPAS (Oracle Retail Predicative Application Server) based solution which allows retailers to calculate their inventory depreciation amounts month by month using different scenarios to model future depreciation. Besides this main function, this multi-user application includes also other features, such as reporting in accordance with specific fiscal rules. 

The solution has full out-of-the-box functionality for all retailer segments, but is ideal for retailers selling seasonal items, such as fashion retail. 

Functionalities covered by the solution: 

  • A user screen allowing quick update of depreciation rates which should be applied to the products in the organization. All rates can be entered at a higher level in the product hierarchy to speed up data entry, review, validation and approval. The rates entry screen is the only feature which requires a manual intervention from users. 
  • A depreciation simulation feature allows the users to simulate and compare different depreciation rates matrices before their validation and finalization of depreciation values.
  • Product reclassification tracking feature allows the solution to manage reclassification of products that have been made in the external merchandising system in the hierarchy which the DEPREC solution loads and takes into account when making calculations and applying relevant depreciation rates. 
  • A sales at loss calculation section allows to identify the products sold at loss and consolidate the sales at loss amounts as needed. The sale at loss amounts analysis enables the user to define and adjust the depreciation rates. 
  • A reporting section, summarizing all the data available on the DEPREC database provides reports on demand for the accounting department and for external auditors as well. 

Architecture:

DEPREC is based on Oracle Retail Predictive Application Server (RPAS) technology used to run Oracle Retail predicative solutions. The platform includes the following features: 

  • Multidimensional databases
  • Hierarchical data (product, time, business location)
  • Calculation engine
  • Aggregation and spreading of data
  • Workbooks and worksheets for displaying and manipulating data
  • Wizards for creating and formatting workbooks and worksheets
  • Menus, quick menus and toolbars
  • Exception management and user-friendly alerts

depreciation planning system application

Benefits:

  • Fast ROI, saving time and effort in the depreciation calculation process. DEPREC takes few hours to perform calculations that would usually require several days or weeks. 
  • Fully automated: Apart from the depreciation rates entry and results validation, no manual intervention is required leaving less margin for error. Moreover, enables the accounting team to spend its time on more valuable activities and actions.
  • Reliable: The entered depreciation rates are based on historical sales at loss values. 
  • User-friendly: Does not require strong IT knowledge from the users.  

The solution supports automated interfaces to two external systems: 

  • An upstream interface coming from the main merchandising system, feeding DEPREC with all the necessary sales data in the depreciation calculation process. 
  • A downstream interface sending the calculated data in DEPREC to the financial accounting system. 

Read customer success story