Unreliable profitability reporting was made reliable
Challenge
The client had reason to question reporting from one factory as the profitability trend was often affected by corrections. The reporting process was based on a complex chain of events. These could be affected by manual handling, accrual accounting problems and exchange rate processing.
Approach
The client had already brought together a group of experts from different fields and from different plants in Europe to map out potential sources of error. The assignment involved finding an efficient way to utilise and coordinate the resources that were at the project’s disposal. A number of workshops were planned to draw up and implement an action plan.
The joint work in the workshops was very effective, and from the very outset the action plan had a structure and focus. A lot of the work was based on securing and correcting settings relating to finance, purchasing, production and costing in the SAP system. In some cases new requirement specifications were required for new functions in SAP.
Effect and improvement
The work was successful and a number of causes of the reporting problems were identified. With new work routines, new SAP functionality and a number of new reports for control and review, the client’s problems were solved. They now consider that they have excellent control over both profitability reporting and development.