Simply flexible – success on the individual company and consolidated group level
Case Study Polytan GmbH
Industry: sport floors and surfaces
Headquarters: Burgheim (Germany)
Employees: about 1,000
Project: introduction of professional accounting with integrated foreign currency conversion according to international standards and budget planning which facilities planning over many years
Modules: LucaNet.Financial Consolidation, LucaNet.Planner, LucaNet.Importer
Polytan, the sports surfaces builder has grown worldwide on an above average scale in recent years, thanks to buy-and-build strategy. For this reason, it was urgently required to introduce a software for drawing up consolidated financial statements, controlling evaluations and planning on a consolidated group basis. The main office in Burgheim takes over consolidation, planning and reporting for the entire holding company with the software from LucaNet.
Polytan has laid sport surfaces all over the world for 40 years. During this time, the brand became the symbol of quality for outdoor sport surfaces. You will find their sport surfaces, among other places, in the Olympic stadiums in Munich, Melbourne and Vienna, as well as different football stadiums.
The company has reached a critical size, and the previously used self-programmed Access database in combination with Excel reports were no longer sufficient to ensure effective accounting.
"Due to our worldwide consolidated structure, the software had to include an integrated currency conversion according to international standards. In our case, the foreign sub-groups needed a conversion from Australian dollar and New Zealand dollar through US dollar to euro". Mathias Schwägerl, Head of Controlling and Financial Accounting at Polytan explains the search for a new software solution. Another requirement was a module for budget planning which would facilitate planning over many years and inspecting forecasts. Of course, the relevant administration and planning of loans as well as planning of intercompany business transactions should be supported. Moreover, the data had to be exported to MS Excel for further processing, e.g. for presentations.
After various presentations of different providers the company opted for LucaNet software within quite a short time. "The integration of planning, consolidation in one database and controlling department complex requirements for currency conversion have convinced us in particular", says Schwägerl.
The implementation of software and training of individual employees were conducted within the agreed-upon time frames. The entire introduction, including training, took two to three weeks. To update history, various types of statements, apart from the latest consolidated financial statement and current planning were imported.
Smooth data import despite individual reporting packages
Only individual reporting packages are applied at the entire consolidated group. They are created in MS Excel and imported in LucaNet system by interfaces. Since the reporting packages must not be completed manually, they were partially linked to financial accounting, so that the necessary data were loaded directly. Additional information for the holding company was completed manually in the package. The data import was conducted without problems. The entire balance sheet, profit and loss account and fixed assets and accruals analysis were with all relevant controlling data (product groups, turnover and material data, countries, sales regions).
Planning for individual companies takes place in consultation with the parent company in a decentralised manner. Planning for the entire group, including consolidation and reconciliation of all intercompany transactions is organized centrally by the employees of the controlling department at Polytan. Thereby, detailed planning of all company reports (sales planning, product planning, production planning, distribution and installation planning) is performed.
Multi-level consolidation compliant with the German Commercial Code
Polytan is consolidated according to the German Commercial Code. The consolidation takes place on many levels through many sub-groups all the way upward to the main group. Thereby, consolidation assistants, like for example, liabilities consolidation, as well as expenses and revenue consolidation are used.
A special challenge for the consolidation is double currency conversion, because many foreign subsidiaries are consolidated not in euro, but in their respective national currencies. The transfer of consolidated sub-groups into the main group takes place in LucaNet at the push of a button: For this purpose, a fictitious company was created where the aggregated figures (in dollars) were combined and converted into euros.
"LucaNet is flexible and quickly adaptable. Thus, the new management requirements can also be taken into account within a short time. Moreover, the detailed information in financial and controlling area is ready at any time on both individual company and consolidated group level at the push of a button. Thanks to server hosting, the worldwide access to a database via internet is ensured at any time of the day and night."
Mathias Schwägerl, Head of Controlling and Financial Accounting
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