# HAV Seafood - Budgeting & Management Reporting Architecture

## Purpose

This file describes the static **Budgeting & Management Reporting Architecture** for HAV Seafood. It is part of **Phase 1 - Business Architecture** and defines how financial planning, management reporting, KPIs, variances, commentary requirements, responsibility and reporting-system relationships are structured.

It deliberately contains **no actual budget amounts, forecasts, actual results, KPI results, variance results, targets, management commentary, report distributions or approval history**.

## Workbook

`hav_seafood_finance_budget_management_reporting_v1.xlsx`

The workbook contains **39 sheets**, including an architecture overview.

## Core model

`Finance Foundation + Cross-Domain Drivers`

`-> Budget Type / Scenario / Planning Cycle`

`-> Budget Dimensions / Budget Lines`

`-> Planning Drivers / Responsibility`

`-> Future Budget or Forecast Values`

`-> Management Report Definitions`

`-> KPI / Variance / Commentary Rules`

The architecture keeps **budget, forecast, latest estimate, target, scenario, actual and management report** as separate concepts.

## Architecture scope

Current static scope includes:

- **6 budget/planning types**;
- **5 planning scenarios**;
- **12 budget-responsibility cost centers**;
- **24 budget line types**;
- **20 planning-driver definitions**;
- **14 recurring management-report definitions**;
- **48 KPI definitions** across financial, commercial, manufacturing-finance and working-capital categories;
- controlled variance/significance and commentary rules;
- explicit reporting-system and source-precedence rules.

## Main sheets

### Planning architecture

- `Budget_Types` - annual budget, rolling forecast, latest estimate, long-range plan, CapEx budget and cash forecast concepts.
- `Budget_Version_Types` - working, submitted, reviewed, approved, locked and superseded version classifications.
- `Planning_Scenarios` - Base, Upside, Downside, Stress and Management Target.
- `Planning_Cycles` - standard process/cadence definitions.
- `Budget_Dimensions` and `Budget_Dimension_Rules` - define which Finance/shared dimensions apply to each planning area.
- `Budget_Responsibility` - maps the existing `CC-*` cost centers to HR-owned positions for budget responsibility.
- `Budget_Line_Types` and `Budget_GL_Mappings` - connect planning categories to the authoritative Finance chart of accounts.
- `Budget_Input_Methods` - manual, baseline, driver-based, FTE-based, standard-cost, contractual, imported, project and derived methods.

### Driver-based planning

- `Planning_Driver_Types` - definitions such as sales volume, selling price, production volume, standard cost, FTE, compensation, shipment volume, working-capital days, CapEx and FX.
- `Planning_Driver_Source_Map` - identifies which domain owns each driver.
- `Driver_Budget_Rules` - defines how future driver values may create planning outputs.

Finance consumes driver values later; it does not become authoritative for Sales demand, Production capacity, HR workforce identity, Logistics shipments or Marketing activity.

### Management reporting

- `Revenue_Report_Structure` - standard commercial revenue drilldown structure.
- `Margin_Definitions` - explicitly separates gross revenue, net revenue, gross profit, gross margin, contribution margin and operating contribution.
- `Profitability_Dimensions` - customer, product/SKU, product family, market, channel and cost-center profitability dimensions.
- `Management_Report_Definitions` - 14 recurring report definitions.
- `Report_Sections` and `Report_Dimension_Rules` - define report content and permitted drilldowns.
- `Management_Report_Hierarchy` - AI-friendly report-to-section hierarchy.
- `Budget_Report_Bridges` - connects budget categories to management-report sections.

The current management-report suite includes Management P&L, Balance Sheet Summary, Cash & Liquidity, Sales & Gross Margin, Customer and Product Profitability, Cost Center Expense, Production Cost & Variance, Inventory & Working Capital, AR & Credit, AP & Payment, CapEx, Budget vs Actual and Forecast/Full-Year Outlook.

### KPI and variance architecture

- `Financial_KPIs`
- `Commercial_KPIs`
- `Manufacturing_Finance_KPIs`
- `Working_Capital_KPIs`
- `KPI_Calculation_Rules`
- `Variance_Types`
- `Variance_Rules`
- `Commentary_Rules`

KPI rows define calculation concepts and source ownership only. They do not contain KPI values. Variance thresholds are synthetic management-control rules and do not seed a business story or actual problem.

## Budget responsibility

The workbook reuses all **12 existing Finance cost centers** rather than creating a parallel budget organization. Budget responsibility is attached to HR-owned positions, while Finance provides the Management Accountant / Controller and Finance Manager review layer.

Actual employee incumbency remains HR-owned. Monetary approval authority remains separate from budget/reporting responsibility.

## Cross-domain source ownership

Important source relationships include:

- **Finance Accounting Foundation** - ledger, GL accounts, cost centers, dimensions and financial-statement hierarchy.
- **Finance Costing** - standard cost, cost components and manufacturing variance definitions.
- **Finance AR/AP** - working-capital and credit/payables structures.
- **Finance Treasury** - liquidity/cash planning structures.
- **Finance Fixed Assets & CapEx** - CapEx/depreciation structures.
- **Sales** - customers, markets, channels, prices and demand-planning drivers.
- **Production** - SKUs, capacity, work centers and operational production drivers.
- **HR** - positions, FTE and compensation structures.
- **Procurement** - supplier/sourcing structures.
- **Logistics** - shipment/service structures.
- **Marketing** - marketing/brand structures where they later create planning/reporting inputs.

## Systems model

The architecture intentionally uses a realistic hybrid model for a company of HAV Seafood's size:

`ESYS-001 Core ERP` -> authoritative financial actuals

`ESYS-007 Microsoft 365 / controlled Excel` -> budgeting and forecasting workpapers

`ESYS-009 Power BI` -> management reporting and analytical presentation

Power BI is a reporting consumer and never becomes authoritative merely because it contains a copy of source data.

## Important conceptual boundaries

`Budget Architecture != Budget`

`Budget Type != Budget Version`

`Scenario != Forecast`

`Target != Forecast`

`Planning Driver != Driver Value`

`Budget Owner != Finance Data Owner`

`GL Account != Management Report Line`

`KPI Definition != KPI Result`

`Variance Rule != Variance Result`

`Commentary Requirement != Commentary Record`

`Management Report Definition != Management Report Output`

`Power BI Report != Authoritative Ledger`

## Phase 1 exclusions

The workbook contains no:

- annual budget values;
- rolling forecast values;
- latest-estimate values;
- departmental spending plans;
- sales or production targets;
- payroll budgets;
- actual financial results;
- KPI results;
- margin results;
- DSO/DPO/inventory-days results;
- budget-vs-actual values;
- forecast revisions;
- variance values;
- management commentary;
- rendered management reports or dashboards;
- distribution history;
- budget submissions or approvals.

Those belong to **Phase 3 - Operational Dataset Generation**, after Phase 2 stories have been deliberately selected.

## Story neutrality

The architecture does not deliberately seed budget misses, margin deterioration, weak forecasting, department overspend, cost overruns, liquidity pressure, working-capital deterioration or poor performance. Thresholds classify future results; they do not create those results.

## Recommended AI navigation

- What planning types exist? -> `Budget_Types`
- Who owns a budget? -> `Budget_Responsibility`
- Which dimensions apply? -> `Budget_Dimension_Rules`
- How should a line be planned? -> `Budget_Input_Methods`
- What are the planning drivers? -> `Planning_Driver_Types`
- Who owns a driver? -> `Planning_Driver_Source_Map`
- How does a driver produce a budget line? -> `Driver_Budget_Rules`
- Which management reports exist? -> `Management_Report_Definitions`
- What is inside a report? -> `Report_Sections`
- Which drilldowns are allowed? -> `Report_Dimension_Rules`
- What does a KPI mean? -> relevant KPI sheet + `KPI_Calculation_Rules`
- What counts as a significant variance? -> `Variance_Rules`
- When is commentary required? -> `Commentary_Rules`
- Where do actual data come from? -> `Reporting_Data_Rules` / `System_Data_Ownership`
- How do budget lines feed reports? -> `Budget_Report_Bridges`
- Which source workbook owns a concept? -> `Source_Mappings`

## Overall role

This workbook forms the static financial-planning and management-reporting layer for HAV Seafood. It provides a controlled framework for later generation of budgets, forecasts, management accounts, KPI dashboards, variance analyses, commentary and management packs while keeping those future records consistent with the company's Finance, Sales, Production, HR, Procurement, Logistics, Marketing and Shared Enterprise architectures.
