For companies with operations around the world, using a structure that includes a large number of legal entities, the process of properly booking transactions for activities that occur between entities can be a daunting task. Having one Shared Services organization using either a global or regional delivery model, where processes can be standardized, can make a big difference. Certainly, also having software that can both simplify and automate the process is also an important part of a complete solution.
Fortunately for members of Peeriosity, it is easy to get objective and unbiased feedback from peers who are interested in sharing their views and helping a colleague, with the option for participants to see the identity of others, with the ability to easily contact peers using Peer MailTM, an e-mail tool that is integrated into the Peeriosity solution.
Recently, the Intercompany Process Leader at a member company used Peeriosity’s iPollingTM to understand what systems other companies were using to recharge global expenses and allocations and reconcile and balance legal entities. Their current process was largely manual, using Excel, and they were unsatisfied with their current solution. The Peeriosity member used iPollingTM to draft two questions that examined this issue; first asking what solution was used, and second, the member company’s level of satisfaction with that solution. Responses were posted in real-time, with visibility to company responses available to all Peeriosity members, allowing for direct communication with peers using Peeriosity’s integrated Peer MailTM capabilities.
The first poll question asked about the system used for the processing of intercompany global recharges and intercompany balancing and consolidation. The iPollingTM results indicate that 24% use SAP, with an additional 12% using a solution that includes heavy use of both SAP and Excel. 20% of responding companies rely on Oracle, with 4% selecting PeopleSoft and 4% selecting Infor Infinium. For non-ERP solutions, Blackline was utilized by 8% of the companies, and Hyperion Financial Management (HFM) was a part of the solution for an additional 8% of respondents. 12% of the responses indicated that their processes were largely manual, relying heavily on tools like Excel to complete processing requirements.
Here are the details:
The second poll question looked at the level of satisfaction companies have with the solution they are currently using. Interestingly, only 28% are either satisfied or very satisfied, and a significant 48% indicate they are either unsatisfied or very unsatisfied with their current solution. Here are the details:
Unlike traditional benchmarking, Peeriosity’s iPollingTM capabilities allow members to very quickly examine this issue in detail, providing a range of experiences and viewpoints that can be reviewed to develop an appropriate and workable answer. Tapping into the experience of peers eliminates guesswork and allows members to quickly access the collective experiences of a large community of users who are facing the same challenges.
Here are a few of the comments from responding companies:
- Right now the company is moving to Oracle EBS, additionally, we are living with two ERPs (JDE and Oracle EBS). It’s too early to tell.
- We have an in-house solution for IC invoices (non-trade) and an in-house Excel solution for tracking IC OOB from SAP ECC. We are very unsatisfied with our current solution.
- We are planning to implement a tool in 2017. Could be SAP or BlackLine (currently in the discovery phase). We are very unsatisfied with our current solution.
- We use SAP to book the inter-company but a consolidation system for tie-out (HFM). Does not work well using two systems. Looking at how to do both in SAP.
- We use a combination of automation within SAP and Excel reporting, but it is overall efficient and effective for us.
- We use Excel to calculate the recharges, which is highly complex and not efficient. To perform the recharges we use SAP to post in both companies at the same time and then extract the reports to check everything balances – this part we are very happy with (most months the total inter-company out of balance is very low). Overall, we are unsatisfied with our current solution.
- We currently use Infor Infinium, but we are migrating off to a new ERP system which is Oracle in 2017. We are unsatisfied with our current solution.
- We operate in a multiple ERP environment, using both multiple SAP and JDE.
- We have developed an in-house intercompany reconciliation tool at a transactional level to assist with the reconciliation process, with the primary matching process completed at a total level through HFM. The recharging process is manual. Overall, we are unsatisfied with our current solution.
If your company has multiple legal entities, what software do you use for global recharges and balancing? What is your overall level of satisfaction with the solution that is currently in place?
Who are your peers and how are you collaborating with them?
“iPollingTM” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity’s integrated e-mail system, Peer MailTM, members can easily communicate at any time with others who participate in iPolling.
Peeriosity members are invited to log into www.peeriosity.com to join the discussion and connect with Peers. Membership is for practitioners only, with no consultants or vendors permitted. To learn more about Peeriosity, click here.