Comarch CDN
Full integration with the ERP system used by the SSC serving the Group's Polish companies
MIS reporting
Automated reporting of results in a management system with full analytics of companies, business segments, and locations
Statutory reporting
Statutory consolidation in accordance with IAS and reporting of separate financial statements of subsidiaries in accordance with the Accounting Act
Budget model
Budgeting and long-term planning of the company's key business processes
Project details
- Integrated statutory consolidation and management reporting system to ensure consistent reporting of results to investors, the Management Board and operational managers.
- Automated financial consolidation in an international Group. Clear presentation of company results and consolidation eliminations.
- Automation and transparency of management reports with all the required cross-sections and layouts of performance reporting.
- Complete budgeting and long-term planning model, based on the control of key parameters and performance indicators.
Challenge
Effective consolidation of financial data
The implementation of the FlexiEPM system in the Baltona S.A. Group began in 2018, when the group had 12 subsidiaries conducting commercial and catering operations in Poland and abroad. A large number of internal transactions, covering services, sales and financial settlements, revealed the need for a statutory consolidation system that would ensure consistency and transparency of reporting.
As a next step, the company decided to automate its management reporting processes. Financial results are now presented in two independent sections: MPK (in line with costs by type and organisational structure) and P&L MIS.
Key requirements and implementation
One of the critical requirements was to maintain the existing MIS reporting format, which is based on the parallel use of data according to organisational and functional divisions.
The elements of the income statement related to commercial and catering operations are presented in a cost by type format, while for logistics and head office costs, a cost by function format is used, reflecting the Group’s results according to the functions of individual units.
Solution
In order to optimise the planning process, the Group Management Board initiated the next phase of the project in the second half of 2020, implementing a comprehensive budget model. It covered three key business areas:
- Operational area – The system supports the planning of sales and trade margins, including purchasing, commercial terms and conditions as well as retrospective discounts.
- HR area – The solution provides budgeting for employment and payroll costs.
- Cost area – The system allows the planning of rent and other costs by type.
The new budget model has not only streamlined planning processes, but also automated key financial activities, ensuring full operational integration within the Group.
- The Baltona Group has implemented the FlexiEPM system as a comprehensive tool for the preparation of monthly consolidated management reports and statutory reports, thus responding to the challenges of managing multiple companies and numerous internal transactions.
- The system, with its advanced consolidation module, automates the elimination of intercompany loan transactions – it identifies transaction partners based on ‘contra’ accounts and automatically eliminates them in consolidated reports. Intra-group reconciliations are presented transparently, allowing full control over transactions.
- The FlexiEPM budget model is tailored to the specifics of each commercial outlet and is based on key business indicators such as passenger numbers and average revenue per passenger, while the automation of budgeting processes enables rapid preparation of forecasts. Planning of key costs, such as rents, has been automated and the model allows variable factors such as inflation to be taken into account.
- By dividing budgeting into six main areas (sales, margin, purchasing, OPEX, concessions, DCC charges), the system offers comprehensive financial support.
- Additionally, the HR controlling and budgeting module secures personnel and payroll data, ensuring that only authorised persons have access to it.
- In addition to employment and remuneration budgeting, FlexiEPM automates the planning of incentive and bonus programmes and enables accurate analyses of remuneration costs at an individual level.
- The system thus supports the HR department in its analytical processes and ensures consistency of personnel cost reporting with controlling reports at the MPK performance level.
FlexiEPM currently manages 12 cost centres across the Group, more than 250 ledger accounts and covers more than 3 300 business areas, offering full control over an extensive financial environment.
Benefits
Comprehensive automation of financial consolidation and controlling, which provides transparency, budgetary precision and full control over finances.
- Consistency and transparency of reporting: The integration with FlexiEPM has provided the Group with a consistent system of consolidation and management reporting, enabling clear and transparent reporting of results to investors, the Management Board and operational managers. Automatic elimination of internal transactions and reconciliation reports guarantee transparency and consistency in consolidation reports.
- Automation of financial processes: Automated financial consolidation allowed the effective management of the performance of companies in different locations, providing a clear presentation of results and consolidation eliminations, which significantly reduced the workload associated with manual data processing.
- Effectiveness of budgeting and planning: FlexiEPM provides the Group with a sophisticated budgeting and long-term planning model, based on key performance indicators (e.g. number of passengers, revenue per passenger). Automated cost planning, including rent and remuneration costs, allows for accurate forecasting of results and flexible response to market changes such as inflation.
- Secure HR data management – The HR controlling module ensures secure access to personnel and payroll data only for authorised persons and automates processes related to remuneration budgeting and incentive planning.
The implementation of the FlexiEPM system brought comprehensive consolidation and controlling support to the Baltona S.A. Group, automating key financial processes and enabling full budget management at multiple operational levels.
