Finance (FIN) Module

Facilitator configurable parameters are

• Management report in play or not
• Journal in play or not and settings
• Loan1 and Loan 2 settings
• Initial cash
• Overdraft limit
• Depreciation term
• Accrual accounting or Cash
• Budget allow or not
• Rental overflow fee
• Research and Development settings
• Integrated reporting settings
• Investors (require facilitator to be certified for C1000)
• Underwriters (require facilitator to be certified for C1000)

Money Management in Business

The MonsoonSIM Finance module is a comprehensive simulation that allows users to experience and learn various aspects of financial management in a business context. It provides a realistic environment for players to develop their understanding and skills in financial decision-making, accounting practices, and financial analysis. Here are some key features and components of the MonsoonSIM Finance module:

1. Money Management: The module emphasizes the management of money within a business. Players learn how to optimize profits by increasing sales and decreasing expenses.

2. Accounting: The module covers two types of accounting methods: Cash and Accrual. Players gain hands-on experience with recording transactions through journal entries, maintaining balance sheets, profit and loss statements, and trial balances.

3. Financial Reports: MonsoonSIM Finance incorporates financial reporting in line with GAAP (General Accepted Accounting Practice). Players can generate and analyze essential financial reports such as profit and loss statements, balance sheets, and trial balances. MonsoonSIM supports average costing.

Operational Expenses and Financial Nuances

• Operating expenses
  • Rental for stores and warehouses
  • Salary for staff working in various departments
  • Overflow (Retail or Warehouse) fee for usage of rental space that exceed the rented space. The exact calculation can be found in the guides on the left panel.
  • Late Penalty payment for B2B or Services
  • Interest charge for overdraft drawdown or loan 
  • Marketing for marketing investment or market report subscription
  • Human resources related (training, recruitment, dismissal)
  • Gain or loss in foreign exchange (if Forex is in play)
  • Write-off for expired or missing products (if FMCG is in play)
• COGS depends on
  • Discount obtained from bulk purchases
  • In-house production (if production is in play)

Integrated Reporting and Business Insight

4. Integrated Reporting (if in play): At the end of the game, learners can design their integrated report which covers the six capitals which showcases how a company communicates its financial performance and value creation to stakeholders. 

• financial (equity funding, debt funding, sales, income, margin, return on assets, return on equity, debt to asset, debt to equity ratio)
• Manufactured  (Unit produced, # of machines, raw material procured, production sites)
• Intellectual (about your Research & Development)
• Human  (staff turnover, staff recruited, trained, counselled)
• Social & Relationship (rating from ecommerce, customer complaints)
• Natural (environment)
• All modules must be in play in order to have meaningful IR report

Cash Flow Management and Bank Overdrafts

5. Bank Overdraft Facility: In situations where cash on hand runs out, system will automatically draw down any unused bank facility (overdraft) to make payments. However, overdrafts incur daily interest, and exceeding the facility limit restricts further drawdowns. The amount of overdraft is configurable by the facilitator. The drawdown is automatic and when there are extra cash on hand, the repayment of overdraft is also done automatically by the system. 

6. Cash Accounting: The module includes a cash accounting system where payment for purchases and expenses requires immediate cash on hand. Insufficient funds may result in undelivered goods or canceled purchase orders.

Delinquency Management

7. Delinquent Payout: If the team exceeds the overdraft limit, incoming payments, sucha as salaries, rentals, and goods purchase orders, become delinquent. The system attempts to settle delinquent payments automatically each day. Facilitator may set a max of 50 delinquency before you will be declared bankrupt. You are no longer able to do any transactions if you are bankrupt. 

Accrual Accounting and Credit Management

8. Accrual Accounting (if in play): The accrual accounting system incorporates vendor credit limits and payment terms. Players must manage account payables and consider the impact of foreign currency fluctuations on imported products.

9. Credit Rating(if in play): The module introduces credit ratings based on outstanding delinquent payments. Players can receive different credit ratings ranging from Unrated to AAA, which affect the company's creditworthiness and loan applications.

Advanced Financial Concepts

10. Loan Management (if in play): MonsoonSIM Finance includes various types of loans (default names are Easy Money and Maxi Profit) with configurable terms and interest rates. Players can explore loan options and understand the implications of different repayment structures.

11. Journal entry (if in play): Learners may be asked to manually enter about 10 journal entries into the accounting ledger. A wrong journal will trigger a message in the inbox so learner can retry. If the game is finished and the all the journals are not properly recorded, facilitator will see the following in scoring matrix "Financial report NOT farily presented". Note that wrong entries do not mean that the final financial results are corrupted or incorrect. The system will do proper book keeping on behalf of the players. 

12. Business funding (if in play): At first sign of profitability, investor is keen to invest 5% new share valued based on your projected sales target 20 days from the time you apply. Investor will give you 50% of the funds but first in the form of a bridge loan to help you get started and to monitor your progress, if in 20 days you have achieved your projected sales, you will get the rest of the money and the investor will get 5% of your company. If you cannot achieve the sales promised in 20th day, investor will cancel the investment and convert your bridge loan into a normal loan with principal and interest you have to pay.

Financial Intelligence and Decision-Making

   

13. Financial Intelligence: The Business Intelligence module provides players with access to financial performance analysis and other intelligence. They can examine key metrics, ratios, and forecasts to make informed financial decisions.

Overall, the MonsoonSIM Finance module offers a dynamic and immersive learning experience, allowing players to develop practical skills in financial management, accounting, and financial analysis. By simulating real-world scenarios and providing a range of financial tools and concepts, the module prepares users for effective financial decision-making in a business environment.

Facilitator can configure the following parameters for FIN (Finance Module)

Note on Module Configuration

Note: The complexity of this module is configurable by the facilitator. It is recommended to start with the default configuration and gradually increase the complexity as the facilitator sees fit. This allows for a customizable learning experience tailored to the participants' needs and skill levels.

Our Other Modules

All our MonsoonSIM modules are intricately interconnected, offering a cohesive simulation experience that mirrors the dynamic interplay of real-world business departments and functions.

Forecast Module: Unlock Future Business Insights with the forecast module.

Marketing Module: Explore Teaching Marketing Principles

Logistics Module: Teach Complex Warehouse and Logistics Management 

Warehouse Module: Innovate B2B Teaching with MonsoonSIM's Wholesales Module