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Full integration with the ERP and CRM systems of the parent company
Business segments
Reporting results by company, business segment, and business function
Stock exchange reporting
Consolidation of financial statements in accordance with IAS/IFRS
IFRS 15
Advanced mechanism for adjusting invoiced revenue
Project details
- An integrated statutory and management consolidation system ensuring consistent financial reporting.
- The financial consolidation process within a complex, multi-level ownership structure is automated through built-in rules and system-based eliminations.
- The system uses advanced calculation mechanisms compliant with IFRS 15 to calculate deferred revenue adjustments for individual customer contracts.
- FlexiEPM is used by dozens of users in 12 countries, supporting scalable consolidation and Group-level reporting.
PBKM about the FlexiEPM implementation
Previous processes required extensive manual verification. Data prepared in Excel could differ from information stored in source systems or from figures presented in management reports. In practice, this meant more time spent checking data, investigating discrepancies and reconciling different versions of the same information.
FlexiEPM allowed PBKM to retain a familiar way of working while removing the typical limitations of Excel, including manually combining files, the risk of working with different data versions and difficulties in comparing results across companies.
Challenge
Consolidation and controlling within a complex ownership structure
PBKM is an international capital group listed on the German stock exchange. Its reporting processes cover numerous companies, multiple currencies, local regulations and the information requirements of the Management Board.
In such a structure, collecting data alone is not enough. The information must also be consistent, comparable and easy to verify.
- As the Group expanded, Excel-based processes and the existing reporting solution no longer provided the flexibility and speed required by management. Data prepared in separate files required increasingly extensive manual reconciliation before it could be used for consolidation and performance analysis.
- At the end of 2018, due to the functional limitations of the previously implemented EPM/CPM system and difficulties in developing it further, PBKM decided to implement FlexiEPM.
- The main challenge was to introduce a single system capable of consolidating both financial and operational data for statutory and management reporting purposes.
The objective was to standardise financial data, streamline the reporting and consolidation process, ensure full integration with the ERP and CRM systems of the parent company and meet the IAS/IFRS reporting requirements applicable to listed companies.
Solution
FlexiEPM: a complete financial consolidation system
In response to the needs of the PBKM Group, FlexiEPM was implemented as a statutory and management consolidation system and a central data repository for all Group companies. The system is regularly used by dozens of users across 12 countries.
PBKM selected FlexiEPM not only for financial consolidation, but also because the platform could support management reporting, sales analysis and specialised calculations, including IFRS 15 adjustments, within the same controlled environment.
- The integrated consolidated reporting model, based on a common database, allows a complete set of management reports to be prepared every month.
- The system allows data to be presented across all business dimensions and structures required by company management.
- Separate and consolidated financial statements are prepared within a single model. Statutory reports compliant with IAS/IFRS are produced in the system in accordance with the requirements applicable to listed companies.
The system successfully addressed the scale and complexity of the PBKM Group. As a result of the implementation, the company gained a consistent repository of financial data for all consolidated entities, regardless of differences between the accounting systems and structures used at entity level.
Control reports are particularly useful in the monthly reporting process. They allow the consistency of local data submitted by Group companies to be verified quickly.
The automation of intercompany balance and transaction reconciliation also provides significant added value. Built-in reports allow companies to identify differences in reported intercompany transactions and make the necessary adjustments.
An important part of the implementation was user acceptance. FlexiEPM allowed the team to work in an environment similar to Excel, while using data stored and controlled centrally.
As a result, users did not have to learn a completely new way of working, while the organisation gained greater control over the reporting process. The system supports data preparation for multiple companies, currencies and local requirements, and then combines the information into a consistent view of the Group’s performance.
Benefits
Consistency, automation and control in financial reporting at the Group level
The implementation of FlexiEPM delivered measurable business benefits. The system standardised and automated consolidation processes within a complex, multi-level ownership structure, improving the consistency and accuracy of Group-level reporting.
- Automation of consolidation processes: Built-in system rules enable automated consolidation eliminations, allowing financial statements to be prepared faster and more accurately. The system includes more than 500 automatic consolidation adjustments.
- Segment reporting: The system enables reports to be generated by company, business segment and business function, giving management a broader view of the Group’s financial and operational performance.
- Control and verification of local data:
FlexiEPM provides control reports that support the verification of local data consistency and automate the reconciliation of intercompany balances and transactions.
This allows differences in reported transactions to be identified and corrected more quickly.
- Scalability and flexibility:
The system supports the scale of PBKM’s operations and enables effective financial data management despite differences between the accounting systems used by individual entities.
FlexiEPM is currently used by dozens of users in 12 countries, who can generate reliable consolidated reports in line with stock exchange reporting requirements.
As a result, the PBKM Group has gained a consistent, centralised data repository that provides full control over reporting processes.
