Frontem Inc

By: Frontem  09-12-2011
Keywords: Sap, Ifrs

IFRS Changeover

The Challenge:

As the roadmaps for the International Financial Reporting Standards (IFRS) adoption for Canadian and US corporations are laid out and debated, it is clear that the global direction taken toward standardization is the way forward and the only details that are still under discussion are the timelines. Facts up to date are: Canadian publicly accountable enterprises are required to report under IFRS beginning 2011 while for the US ones the transition will go over a period of years, with a proposed SEC deadline beginning 2014.

The complexity of the IFRS changeover process as well as the need to keep parallel set of books for the transition period should not be under-estimated. While often seen as a purely reporting or re-statement exercise, the IFRS changeover will definitely require modifications at operational and transactional levels of the SAP ERP applications.

Clients running SAP ERP and SAP Financials should be realistic and aware of these significant changes that are necessary to meet the IFRS requirements and deadlines.

The Solution:

Frontem can help with planning, designing and implementing the changes required by IFRS changeover on your SAP applications platform.

Key Deliverables for the IFRS Solution package:

  • Initial Assessment of the client current SAP system architecture and functional footprint with respect to IFRS induced changes
  • IFRS Solution design research: outlining the options available and various design implications
  • IFRS Solution Blueprint and Prototype
  • Configuration and / or re-configuration to support IFRS requirements
  • IFRS Reporting Package: Statements of Financial Position and of Income
  • Comprehensive Functional, Integration and Regression testing
  • Data Re-alignments and data loads to support comparative reporting: Local GAAP / IFRS
  • Documentation: Key User Training documentation and configuration guides.

SAP Audit

The Challenge:

There are constantly two dimensions which need to be considered when you come across these two worlds: SAP and Audit. First, SAP applications are highly technical, complex and are continuously evolving driven by new business requirements. To perform their work, auditors ideally would need to understand SAP functional and technical aspects.

Second, the work of the auditor is focused on delivering independent and objective evaluation with respect to adherence and applicability of certain standards, policies and regulations: the auditor will compare the enterprise conditions against predetermined sets of rules and criteria. You have to meet those standards regardless of application used to record relevant business transactions, including SAP.

Facts are that technical constrains, difficulties in determining the required data, sourcing and interpreting the data from SAP can transform your audit process into a time consuming and very costly process.

The Solution:

To cover this apparent distance between the two areas of specializations in an efficient way, you need interface specialists with expert knowledge that are able to understand both topics.

Frontem has developed a Solution package that can cover this knowledge gap with the following audit specific services:

  • Audit for SAP implementation projects: pre and post implementation
  • Audit for Data migration and takeover
  • Quality assurance for SAP projects and processes
  • Support for Auditing financial statements
  • DART (Data Retention Tool) implementations

FSCM Solution

The Challenge:

For companies dealing with a large number of customers or with big volumes of AR transactions, it has become a stringent need to automate, centralize and harmonize the way they execute and manage the Credit and Collections activities

To improve their overall cash positions, these companies have to target lower DSO, reduce their write-offs caused by customer disputes and make sure their credit risk exposure levels from their customer base is lowered as well.

From a business systems perspective, additional challenges appear if these corporations have distributed SAP or non-SAP systems operating for local branches, business units or country subsidiaries.

The Solution:

The Financial Supply Chain Management (FSCM) applications, added as a relatively new functionality to the SAP ERP ECC6.0 package, prove to be a highly flexible, modular solution for companies dealing with these types of challenges. It was designed to collect data from multiple, distributed SAP environments as well as from external data sources (e.g. credit rating agencies).

Frontem has developed a solution package that can be implemented quickly to cover the following functionalities:

  • SAP Collections Management
  • SAP Disputes Management
  • SAP Credit management

SLO - System Landscape Optimization Solution

The Challenge:

Business driven changes and requirements for standardization and harmonization occur in the lifetime of any organization running SAP applications.Just a few examples of these types of changes are:

  • IT systems consolidation driven by IT cost reduction measures
  • Company and Group of companies integration or split driven by mergers, divestitures or acquisitions
  • SAP Organizational Structures re-alignments and Business processes adjustments or optimization driven by standardization initiatives
  • Legal or regulatory requirements for countries or industry sectors

If you factor in the SAP specific technical, system architecture and functional design implications, then you have a recipe for a complex SLO project.

The Solution:

When this type of changes occur in your organization with your productive SAP system, you need a partner who did this before. You should choose Frontem as partner, because we can prove that Knowledge is Experience and in SAP SLO projects the experience is the most valuable commodity you would need to have.

For SLO projects our experts can help you with the following specialized services:

  • Project planning and System architecture planning
  • Selection of adequate tools and methods for migration
  • Systems / Clients merge
  • Plant or Company Code de-commissioning
  • Organizational Units and master data changes: chart of accounts, cost centers, profit centers
  • Company Code merge / split
  • Data migrations: SAP to SAP, non SAP to SAP
  • Cleansing and realignments

Keywords: Ifrs, Sap