Pretoria-based SAP services specialist Satreno has been awarded a major contract by state-owned defence equipment manufacturer Denel to consolidate and streamline its administration processes and install an integrated financial reporting system.
At the heart of the assignment, which is likely to take around 18 months and involve up to 10 Satreno staff, is Denel's requirement for a more efficient financial consolidation process, resulting in more time for analysis and the effective execution of strategies.
Another important requirement is for aggregated reporting across the group's functional entities including human resources, procurement, counter-trade, business development, finance, risk management and treasury.
According to Satreno's Elza le Roux, there is a need for information from multiple general ledgers and charts of accounts, residing on various source systems such as SAP, QMuzik, Accpac and System21 to be aggregated and consolidated onto a single platform.
In addition, it is envisaged that the new system will enable the corporate finance department to automate repetitive tasks, eliminating a substantial amount of clerical activity.
The main product and methodology being employed on the project is SAP BI (Business Intelligence), including SEM BCS.
"Many of the current systems and processes being used are manual. The new system will feature a much higher level of automation, but will require IT and business process changes at various levels," says Le Roux.
Major benefits that Denel is expected to enjoy from the new system include:
* Data integrity - one version of the truth across all functions and entities within the Denel group.
* Internal data availability - all authorised personnel will have access to the same data.
* Data availability for external auditors with a full audit trail of any adjustments.
* A much speedier consolidation process - the goal is to have this completed by the fourth day after close-off.
* Identical processes for year-end, month-end, budgets and forecasts.
* Various levels of pre-validation before data is loaded into the new system.
* Formal reporting on inter-company and inter-entity differences before data is loaded into the system.
* SAP will provide the platform for future business intelligence initiatives such as strategy management and performance measurement.
* Sharing of the same system/database across entities enabling a uniform platform and standards for future business intelligence implementations.
Significantly, the new system will have a new and more transparent inter-group clearing facility, enabling a range of pre-validations to take place. External auditors will also be able to place more reliance on the new consolidation system and data, a benefit that could result in reduced audit fees.
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