Introducing monthly group reporting at Metabo on the basis of LucaNet software
Case Study Metabowerke GmbH
Industry: power tool manufacturer
Headquarters: Nürtingen (Germany)
Employees: about 1,800 worldwide
Project: Introduction of software for efficiently implementing a monthly group reporting; quick monthly consolidation; implementing coherent planning
Modules: LucaNet.Financial Consolidation, LucaNet.Planner
As an internationally active group, Metabo is reliant on transparent group accounting. Since the implementation of LucaNet, the enterprise has been benefiting from very high transparency in its consolidation. Differences that arise can be resolved rapidly and straightforwardly.
Metabo – this globally recognised brand stands for reliability and competency in manufacturing power tools. The roots of the enterprise date back to 1923. In the Swabian town of Nürtingen, Albrecht Schnizler built the first everhand drill in his parent's bakery. Today, the medium-sized enterprise's range includes machinery and accessories, particularly focused on the core target groups of the metal trade and industry, as well as the building and renovation trades. Production no longer only takes place at the headquarters in Baden-Württemberg, but also in Shanghai. With 23 distribution companies and more than 100 importers, Metabo is successfully represented at an international level.
Monthly consolidation required
The software system previously applied by Metabo was not very suitable for the consolidation requirements of the power tool specialist. "With our old system, we could only implement a quarterly consolidation. Anything else wasn't feasible without great effort. Furthermore, the tool didn't hold any optimal planning options ready," stated Oliver Haug, responsible for Group Accounting and International Controlling at Metabowerke, on the previous practice. In that respect, the requirements for the new software solution were obvious: the tool had to allow the implementation of a monthly group reporting. A requirement for that was quick, monthly consolidation. In addition, the implementation of better, coherent planning had to be possible in the future.
Data import via MS Excel
At Metabo the entire import of data takes place via Excel reporting packages. These include the import of transaction figures and balances for each ledger account, fixed assets, provision and equity analysis, as well as diverse disclosures, such as personnel figures, for example.
"We really are very satisfied with the introduction of the software at our company. Everything ran very quickly and smoothly. Thanks to our expert LucaNet consultant, any specialist or technical questions that arose could be resolved immediately," explained Oliver Haug on the implementation process.
Saving time during consolidation
What makes LucaNet software special is its high level of process automation. Only small manual interventions are required to process the data. "Therefore, we were able to make our consolidation process much more efficient. We have a very tight schedule in our work organisation: the numbers in our consolidated financial statements must always be available on the seventh working day. This is no longer a problem with LucaNet," explained Oliver Haug, happily.
Up until 2013, consolidation was performed in accordance with the HGB accounting standard (German Commercial Code), which was then switched to IFRS. At Metabo, a full consolidation is implemented on three consolidation levels, taking multiple subsidiaries into account. LucaNet satisfies in this respect with its simple handling, very high consolidation transparency and correspondingly simple clarification of differences. To optimise the process, Metabo uses the wizards for debt consolidation, expense and revenue consolidation, as well as elimination of intercompany profit and loss. Here a lump sum consolidation takes place during the year followed by a paired consolidation at the end of the year.
Depicting the forecast and annual planning
Eight people at Metabowerke use LucaNet software as part of the planning process, each of them with individual write and read permissions. The organisation is structured in such a way that a budget review including a forecast is implemented in the spring. The second forecast and annual planning takes place every autumn. The planning data is depicted on a monthly basis at company level. The planning forms and planning wizards integrated into LucaNet efficiently support the processing of the figures.
"Our balance sheet and cash flow planning was simplified considerably by using accounting rules," stated Oliver Haug.
Reporting has high significance
LucaNet reliably covers all of the power tool specialist's reporting requirements. Metabowerke present their balance sheet, cash flow, P&L, as well as diverse statistics using individually created, downloadable reports. The reporting process is facilitated by the centralisation of the actual and planning data within one database, as well as the ready-made report structures in the software, which can be easily adjusted. Complex connections can be represented clearly and comprehensibly for third parties, e.g. for auditors.
"In our view, the LucaNet software satisfies with its great user-friendliness and flexibility. The database architecture is based on the newest standard of technology. Furthermore, the diverse functions for consolidation, planning and reporting present a very intelligent, well-conceived system."
Oliver Haug, Group Accounting and International Controlling
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