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Kingspan Simplify their Financial CPM Financial Consolidation (PM10)

Case Study

Infor has allowed Kingspan to automate the consolidation of multiple entities across a wide variety of currencies, geographies and industries.

Company: Kingspan
Industry: Construction
Country: Ireland
Employees: 5,800

Solution Featured

The Challenge

The financial consolidation process in Kingspan was largely excel based and required a huge amount of effort from Group Finance to produce accurate, timely information both from a management and regulatory perspective.

The intercompany reconciliation was largely manual and some entities had asked for a tool to assist them in agreeing their balances. Other manual processes included full intercompany eliminations, statutory to management reconciliation, joint venture elimination and standard journals and audit trail – all managed by Group Finance.

Over the past couple of years Kingspan has continued to grow from strength to strength through expansion and acquisition. With the financial consolidation
system having been mainly excel based, adapting to these changes quickly was becoming more and more of a challenge.

Background

Kingspan Group is a leading manufacturer of a range of sustainable products for the construction industry. The group’s principal activities comprise the manufacture of insulated panels, rigid insulation boards, raised access floors, steel frame and timber frame o-site solutions, environmental and renewable fuel & water storage solutions and hot water systems.

The Solution

Kingspan Group began using Infor Corporate Performance Management software for their management reporting in 2003, replacing a diverse range of reporting systems at both a group and divisional level. The main objective of the project was to implement a nancial consolidation system that was extensible, increased efficiency, increased accuracy and reduced the amount of time dedicated to the process. Infor10 CPM Financial Consolidation
(PM 10) ticked all of those boxes.

The new consolidation process allows users to continue using a familiar Excel interface as a window into the data using a live feed to submit and read from a central SQL Server database. Opening balances and intercompany information are automatically populated into the statutory packs as a starting point for the entities, removing the need to rekey or have multiple Excel formulas written to pull balances through.

Entities are responsible for validating and submitting their packs with the assistance of control checks and an approval process included in the application. Management data is automatically populated to allow for the statutory/ management reconciliation. Entities have also been given the access to create their own journals which are then approved and submitted by group in a controlled manner.

Once all the packs have been approved and entity journals posted, the group can then run the automatic inter-company elimination process. Joint ventures are also automatically consolidated.

Codec has been the implementation partner of choice for Kingspan since the original implementation in 2003. Codec is an Infor channel partner and specialise in Enterprise Performance Management and Business Intelligence. Codec has an extensive knowledge not only in the Infor technology but also in the business and accounting aspects of budgeting, forecasting and nancial consolidation. Also Codec’s longevity in the market place has been demonstrated in that the same people have been involved from the commencement of the initial application in 2003 through to today.

The Results

“The main benefits of this automation process are speed of delivery of financial reports with formal data controls enhancing accuracy, while being flexible enough to allow for easy integration of acquired entities.”
Daragh Kavanagh Group Financial Controller Kingspan Group