Many companies struggle to make financial decisions as their data and departments are siloed across multiple divisions, geographies or even periods. In this post, we look at ways of consolidating financials with Solver.
Solver consolidates by populating the Solver Data Warehouse (DW) with data from the ERP system(s). The latter is the way most consolidations software work. Using the Solver Data Warehouse (DW), you get a best-of-breed consolidation architecture. You can upload data from an unlimited number of ERPs and/or companies and use the Solver Reporting module to report across and consolidate the companies that were uploaded in the data warehouse. You can consolidate both General Ledger data as well as operational data such as Payables, Receivables and Sales.
This is not a new concept as moving data out of the ERP system(s) and into an external database where the consolidated reporting will take place is also used by most other well-known consolidations and reporting tools. Using Solver’s Gateway to connect to on-premise ERPs or it’s cloud ERP connectors, data is loaded from the ERP system(s) and into the data warehouse at pre-determined frequencies and allows for dynamic insight into the desired data sets.
Consolidating with Solver becomes increasingly beneficial under one or more of the following conditions:
Moderate to advanced currency requirements (beyond what is done in the ERP system).
Medium to many companies to consolidate.
Concerning the slower ERP system performance when heavy reports are being executed. x Need to enter elimination entries or other consolidation adjustments beyond what can easily be performed within the ERP system itself.
Interest in also consolidating certain operational data (payables, sales, etc.).
Interest in creating a platform (the Solver DW) for future/additional reports, budgets and dashboards that also bring in data from other data sources than the ERP system.
Different chart of accounts structure across companies.
Incorporating workflows and business processes
Depending on how complex your consolidation process is, there are several options for how to organize the information in the data warehouse.
If your processes are fairly simple you could manage it yourself without any Solver workflow functionality.
Use the Solver’s workflow module which will allow for an automated workflow status screen showing where each person is in the monthly consolidations process (this includes email notifications and discussion functionality to ease collaboration with other data owners)
Seamless consolidation adjustments and currency conversions
Multinational companies are increasingly in need of a safe, easy way to create IFRS to GAAP (or the other way around) adjustments in order to comply with domestic and international accounting rules. Solver can perform the adjustments or even currency conversion within the Solver Data Warehouse (DW) (or manage sourcing the required information in the containing ERP system as required).
Want to Learn More? Download the Complimentary White Paper
To learn more about this or other ways of consolidating Financials using Solver, feel free to download this complimentary White Paper or contact us to discuss your specific requirements.