Data and processes: Reliable and lean

Complex decision-making processes in a dynamic environment are practically part of everyday life for organizations today. Finance departments are also undergoing change, with accounting playing a key role.

Only the continuous optimization and digitalization of processes can lead to the desired result. The role of finance departments in companies has changed significantly in recent years.

CEOs, CIOs and sales and marketing managers expect their CFOs and their teams to provide well-founded analyses and a basis for decision-making in order to contribute to value creation - preferably in real time.

This is the only way to sustainably support the growth of companies in today's globally networked and highly dynamic business world. There is no end in sight to this development.

In a global KPMG study in 2016, 63% of CEOs surveyed assumed that the role of CFO would continue to grow in importance over the next three years - also in comparison to other C-level management positions.

The optimization of business processes with the help of modern technologies is therefore at the top of the agenda. For 70 percent of the CEOs surveyed, this will have the greatest impact on the future role of CFOs.

41 percent want their CFO to pay the necessary attention to details and processes. Existing processes must be able to be quickly adapted to new requirements at any time and should eliminate sources of error caused by media disruptions.

Those responsible for accounting can make a decisive contribution here. The aim is to ensure error-free transactions and financial statements as well as meaningful analyses at all times.

To achieve this, the underlying data such as receivables and payables should be available in real time and be correct. Finance departments are under a lot of pressure to post all transactions accurately and on time, especially at the end of the month.

In this context, in addition to the time factor, the "first-time-right" principle for data capture is of great importance. After all, inadequate data quality results in high indirect costs and increased correction effort due to incorrect or significantly delayed business processes.

So how can these challenges be overcome? The key to success lies in the optimization, standardization and extensive automation of SAP FI/CO processes - including those in accounting.

This involves the timely capture of data of the highest quality, process automation, the processing of mass data and reporting. However, most approaches to automating SAP processes are not very flexible and are heavily dependent on IT resources.

Systems are therefore required that enjoy maximum user acceptance and avoid the use of "workaround solutions" that cannot usually be audited. Winshuttle's Application Data Management (ADM) platform, which has been used by renowned customers for years, has proven its worth here. Two practical examples illustrate its added value.

Maersk Line: plus 15 percent productivity

Maersk Line is the world's largest container shipping company. Every time a ship docks in a port and delivers containers, invoices are created and suppliers are paid. All the transaction data generated in the process is managed with the commercial software SAP ERP 6.0 Financials.

Employees have to enter individual data for each financial transaction code. Initially, Maersk relied on manual configuration and booking. This procedure was labor-intensive, time-consuming and error-prone, and therefore costly.

Over time, the input processes were localized in different countries, further increasing costs and the number of errors in the system.

To solve the problem, Maersk initially relied on the use of Microsoft Access and Excel macros. This soon meant maintaining more than 2000 scripts and templates, which resulted in significant administration and compliance issues.

Maersk finally implemented the ADM platform from Winshuttle. This allows employees to use the Excel they are familiar with for data entry. This minimizes the incorrect and awkward entries that often occur when entering data directly into SAP.

The platform regulates the transfer of data to SAP and also validates it before it enters SAP. In addition, the IT team at Maersk was able to standardize the processes with templates and workflow applications and remove unmanaged macros - an important contribution to compliance and system availability.

With the help of the platform, Maersk was able to significantly reduce errors and the resulting correction effort. In addition, a time saving of 90 percent per process was achieved for transactions such as the booking of incoming payments (F-28) and the clearing of payments (F-32).

Maersk estimates the increase in productivity achieved by the finance and accounting teams at ten to fifteen percent in total. Thanks to the successful process optimization, the company was able to remove 50 full-time employees for projects in which they can apply their expertise more effectively.

Schnellecke accelerates document handling

If accounting processes are to be optimized, incoming documents from external sources whose data structure cannot be influenced pose a particular challenge. This applies in particular to paper-based documents, but also to digitally received documents such as incoming invoices.

Their processing holds great potential for reducing costs, especially with full SAP integration. Centralized invoice management is particularly recommended for companies with multiple locations.

This is where the software solutions from Winshuttle partner WMD Group come into play. On this basis, cost and revenue controlling can be installed to increase transparency in accounting. For example, the SAP modules MM (purchase order) and FI (invoice) can be linked for accounts payable and approval processes can be set up down to the item level of invoices.

Thanks to automation, the process from order to payment (procure to pay = P2P) can be accelerated. Based on the WMD Group's solutions, Schnellecke Logistics, a logistics service provider for the automotive industry operating in 15 countries, has significantly optimized its document handling.

According to Bernd Grimm, Senior Manager IT at Schnellecke, the processes have been accelerated by a factor of four.

Grimm adds:

"We were able to successfully compensate for the reduction in our team due to maternity leave and partial retirement."

If invoices are not available electronically, they must first be scanned and converted into digital documents. If they are received electronically, invoice-relevant information is automatically recognized, compared with the SAP master data and checked for plausibility. The release process can then be initiated. Thanks to end-to-end P2P processes, invoice audits can be carried out much faster.

Conclusion

Data capture, quality and document processing can be optimized with the help of suitable technologies. This enables organizations to significantly increase the efficiency and transparency of their accounting processes.

Thanks to the minimized need for corrections, valuable resources are conserved and well-founded decisions can be made more quickly. In this way, clear competitive advantages can be secured.