There’s a population of Sage X3 customers who are charged with aggregating their parent organization’s data from one or more manufacturing or distribution subsidiary entities. Consolidating financial information from multiple subsidiaries, with more than one currency, can be challenging if you don’t have one of today’s financial consolidation tools to upgrade Sage X3 and any other ERP tool your subsidiary entities might utilize. Data is steadily growing in amount and importance to organizational decision-making, which is why executive teams are shopping for the best solutions to empower their business end users to consolidate data into a singular set of financial statements. In this article, NexTec Group will lay out your technology options for modern, dynamic, and business user-friendly financial consolidations using Sage X3. If your manufacturing or distribution company is growing, a powerful reporting and consolidation tool can streamline your Sage X3 deployment, providing more flexibility and power in your reporting processes.
Financial consolidations combine subsidiary transactional GL data into one set of financial statements for a parent company. These reports are usually comprised of Profit & Loss, Balance Sheet, and Cash Flow reports, including all of the subsidiary data that explains the overall health of the parent organization. Consolidations sometimes require currency conversion for multiple monies, transactional eliminations between subsidiaries, and any other adjustments that have to be manually performed without modern functionality. There are plenty of reasons why a manufacturing or distribution organization might be seeking today’s best software, but let’s focus on two of the primary motivators.
The two main reasons your finance department might be looking for an automated consolidation solution are both related to product age. Some are hopeful that they can get away from older tools that are too simple to meet today’s business demands, like manual Excel spreadsheets. Others want to get rid of more mature software because of how complex they are for business end user management, like Cognos or Hyperion.
Regardless of industry, Sage X3 users that are responsible for consolidating multi-national companies usually perform a regular set of tasks. Some have to routinely convert currencies and manually adjust month-end consolidations for national and international standards, like the International Financial Reporting Standards (IFRS) to Generally Accepted Accounting Principles adjustments (GAAP), otherwise known as IFRS to GAAP. NexTec Group has worked with those who require deeper analytics with sub-ledger information and/or need a solution that is part of a complete suite of Business Intelligence (BI) tools, fully integrated with applications for ad-hoc reporting, dashboards, budgeting, and data storage. Next: how to select the best tool for your manufacturing or distribution organization.
To continue learning more about manufacturing and distribution financial consolidations with Sage X3, read the rest of this article here.