Management

Accounting
Vrije Universiteit Amsterdam
February 9, 2015
Drs Yves Boeltjes de Vries RA RC /
Stefan van Driel

Background
Yves Boeltjes de Vries:
Master Business Economics - University of
Amsterdam
Postgraduate Accountancy - University of
Amsterdam
Postgraduate Controller - Vrije Universiteit
Amsterdam
Arthur Andersen & Co Accountants
Mexx
Examiner VU Postgraduate Accountancy

Management Accounting

Strategy
Long term planning
Budgeting
Accounting
Reporting
Forecasting

Management Accounting
(II)
Important for:
Execution of every function
Steering and control
Determining realization status
Controlling spending available budget

Basics Management Accounting are Key

Accounting
debet, credit journal entries
accrual accounting
capitalization
cash flow
Business planning
long term
strategy based
sensitivity analysis

Basics Management Accounting are Key (II)

Budgetting
fixed versus variable costs
direct versus indirect costs
Forecasting
Full year estimating
Rolling forecasting
Comparison with budgets

Key Performance Indicators

Consolidated / Top
Net sales
GP
Ebit / operating margin
EBITDA / Cash flow

Frequency
YTD versus FYE

Functional KPIs
Sales
Net sales (customers)
Net sales per square meter (shops)
GP (customers)
GP per square meter (shops)
Traffic KPIs
Growth rates (sss %)
Comparison with Budgets
YTD versus FYE
Wholesale versus retail

Functional KPIs (II)

Design

Cost price per style

GP per style
% dropped styles
Volume per style
Turnover per style
Achieve

Variance analysis (price/costs/exchange

rate)

Functional KPIs (III)

Property
ROI
Capex
Turnover per m2
Marketing
Campaign costs
Exposure rates
Actual versus budget

Functional KPIs (IV)

Sourcing

Cost / GP per style

Freight rates (budget versus actual)
Duty rates
Time needed for Production
Time needed for transport

Warehouse/distribution
Storage rates
Handling rates
Outbound cost rates

Examples of Functions

Sales manager
Marketing manager
Distribution or warehouse manager
Sourcing manager
Procurement
Property manager
Independent entrepreneur

Examples of Functions (II)

and obviously also:

CFO
Financial controller
Business controller
Tax manager

Transfer Pricing
Pricing of transactions between two related
entities
Important for:

maximizing operating performance

documentation for tax authorities
financial efficiencies
performance incentives

Transfer Pricing (II)

Criteria Transfer Pricing Systems:
Provide the right incentives to enhance
strategy congruent decisions
Reflect responsibility structure
Facilitate fair and transparent performance
measurement
Enhance efficiency of administrative
processes

Flowcharts Mexx supply chain and

TPS

intercompany structure before 1997

Goods

Mexx France

Mexx Belgium

Wholesale
Customers

Mexx Holland
GOODS

Goods

Mexx Boutiques

Suppliers:
Far
East
Turkey
Europe

GOODS

Mexx Far
East

GOODS
SERVICES

Mexx
Europe

GOODS

Mexx Retail

GOODS

Retail
Customers

Mexx Belgium

GOODS

Mexx
Europroduction

GOODS
SERVICES

Wholesale
Customers

GOODS

Mexx
Germany
GOODS

SERVICES

Mexx International

Mexx
Modehandels

GOODS

Retail
Customers

17

intercompany structure after 1997

Central
Company
Goods at
landed cost

Mexx Retail entities

Xxtra Kinderkleding
Boutiques
Belgium
Mexx Ltd
Scandinavia
Goods

Mexx FO entities

Mexx
Sourcing
Agents

Mexx Sales
Agents

Mexx Far East

Mexx Europroduction

Mexx Netherlands
Mexx France
Mexx Belgium
Mexx Scandinavia

Goods

Mexx Germany Holding

Mexx Ltd.
Mexx Boutiques
Mexx Austria GmbH
Mexx Belgium NV

18

Goods at
landed cost

Goods at
landed cost

Wholesale
Customers

Consumers

Third Party Suppliers

Goods

Mexx Supply
chain

#
#
#
#

1
2
3
4

Image fee
Design fee
HQ fee
LRD remuneration