situation, and have a complete picture of the relationships between our companies as it is critical to the preparation of the consolidated financial statements’’
A large and complex company, which has offices in different countries across the world, it has a fundamental need to keep control of the performance of it’s subsidiaries in order to have complete and accurate view of the business. To meet this need, software is required that enables and simplifies dialogue and collaboration.
This is a case study of Danieli S.P.A., which consists of about 50 entities and uses the Talentia Intercompany solution from Talentia Software.
The Danieli Group was founded in 1914 and was a pioneer in the design of steelworks. Danieli gradually expanded their operations both in the construction of machinery for the steel industry as well as the design and manufacture of steel production facilities to become one of the industry leaders worldwide. It currently has approximately 8,000 employees working on fourteen production lines in several factories across Europe, the USA, Thailand, China and India. Since 1984, the parent company has been listed on the Milan Stock Exchange and as a result is required to prepare quarterly consolidated financial statements.
“As a listed company we must fulfil certain obligations and to do so, we must have a complete view of all of our business,” says Lucia Felettig, Group Chief Accountant of the Danieli Group. “This is why we need a solution to enable us to manage the
reconciliation of intercompany transactions, which must occur before the consolidation process.”
The Talentia Intercompany Project
Talentia Software has been successfully supporting The Danieli Group in the preparation of their consolidated financial statements for many years. In addition, since early 2008 Talentia CPM, also supports the intercompany reconciliation process using the Talentia Intercompany module, a collaborative web-based portal solution that incorporates workflow.
“The implementation of the application started in March and was very straightforward. After a short training session we undertook a test on a quarterly basis and, since June, we are fully operational” said Felettig.
Talentia Intercompany does not require any physical installation, deployed via the Internet it requires no maintenance. The solution reduces time to close, and delivers reliable and transparent financial information in real-time. It also allows for the collection of all internal operational data, verification and validation and the creation of common and unified information. In this way it is possible to develop a ‘collaborative’ relationship between companies in the group and all consolidation, reporting and budgeting processes conducted by the company are visible and manageable by the central office.
“The benefits seen with the use of Talentia Intercompany are varied, as it allows you to have a transparent dialogue in real-time between different countries and the parent company. All of this is crucial to monitor the situation and have a complete overview of intercompany transactions, essential for the preparation of consolidated financial statements” says Felettig.
The application integrates important functions such as the management of different currencies and exchange rate differences. It also allows you to monitor the progress of work and minimise delays by automating the sending follow-up e-mails. You can also enter the reasons for any delays and attach invoices so that they are visible to everyone.
The exchange of information is greatly simplified and the distances between companies established in various parts of the world are minimised through consistent and transparent dialogue, an essential element for optimal management of a large group and its continued development.