gensler multi company multi currency seven years later · – extracted tokyo (jpy), china (cny)...

Gensler Multi Company Multi Currency –

Seven Years Later

Introduction and Background

©2016 Deltek, Inc. All Rights Reserved 2



About Gensler:

2,700 Active Clients

$1.1 Billion in Architectural Revenue

Network of 5000+ employees worldwide

Local expertise global perspective from 46 offices in 17 Countries

• Abu Dhabi • Chicago • London • Pittsburgh • Singapore

• Atlanta • Costa Rica • Los Angeles • Raleigh • Sydney

• Austin • Dallas • Mexico City • San Diego • Tampa

• Baltimore • Denver • Miami • San Francisco • Tokyo

• Bangalore • Detroit • Minneapolis • San Jose • Toronto

• Bangkok • Dubai • Morristown • San Ramon • Washington, DC

• Beijing • Hong Kong • New York • Sao Paulo

• Birmingham • Houston • Newport Beach • Seattle

• Boston • La Crosse • Philadelphia • Seoul

• Charlotte • Las Vegas • Phoenix • Shanghai

http://www.gensler.com/

http://www.gensler.com/



Agung Zakaria

– Business Systems Specialist

– Joined Gensler in 2015

– Prior Experience:

• Business Systems Manager at EDAW|AECOM

• Application Support Manager at Deltek

Karen Scott

– Business Analyst at Gensler

– Joined Gensler in 1987

– Co-Project Manager for MCMC Implementation

– Project Manager for Intercompany Subledgers Implementation

History of MCMC at Gensler



MCMC Timeline

ENABLE MCMC

UAE

SINGAPORE

HONG KONG, KOREA,

THAILAND

BRAZIL

QUATAR

CANADA

INDIA MEXICO AUSTRALIAIC TEAM FORMED

MACAU

ENABLE IC SUBLEDGER

ADD CUSTOM IC TAX

CURRENT STATE

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16


Conversion to MCMC

Two Vision databases

– United States (USD)

– London (GBP)

Merged and extracted companies

– Extracted Tokyo (JPY), China (CNY) and Costa Rica (USD) from United States database

– Extracted Dubai (AED) from the London database

– Merged London and United States databases into one single Multi-Currency, Multi-Company

database

11 legal entities doing business in five functional currencies

Vision version at the time of conversion 5.1


MCMC Conversion – Key Decisions

Several blended rates for conversion process

One Daily Exchange Rate per Period

Every employee has a billing rate in all functional currencies

Project Currency = Functional Currency

Did not enable subledgers between the companies

Unique employee numbering solution

Billing set up - start invoice numbers by company

Enabled currencies based on invoicing requirements

Responsibility Approach: minimize impact on regional staff offices


MCMC Conversion – Success Factors

Team consisted of Firmwide and Regional Accounting Staff

Back filled key staff

Contacted other firms for advice and lessons learned

Most work done in-house (conversion, testing, configuration)

Assistance from Deltek consultants

Converted database many times

Testing, testing, testing

Lots of communication – within the team, throughout the company

Where we are now



Gensler MCMC Growth

11

65 5

22

1615

23

L E G A L E N T IT IE S C O U N TR IE S FU N C TIO N A L C U R R E N C IE S

E N A B L E D C U R R E N C IE S

44000

131000

IN TE R C O M P A N Y TR A N S A C TIO N S

0

14000

IN TE R C O M P A N Y IN V O IC E S

2009

2016


MCMC Improvements – Transfer Pricing

Intercompany Billing has more transfer pricing options than Cross Charge

Prior to 7.1 Intercompany transfer pricing for all companies is the same

Enhancement after Vision 7.1:

– Transfer pricing based on project owning entity

– New override functionality based on employee entity

– Example: cost * 2.85 for all Intercompany Billing, except when Brazil employee working on US or UK projects they will get standard billing rate


MCMC Improvements – Enable Subledgers

Enable Detailed Subledgers for Intercompany

Billing

Decisions:

– Intercompany A/R and A/P in same currency

– Vendor to hold FX risk

– New Intercompany GL Accounts. Different

from pre-Intercompany Billing implementation

accounts


MCMC Improvements – Tax Bolt On

Develop custom Intercompany Billing Tax Bolt On

– To expand current Vision Intercompany tax

functionality

– Partnered with Deltek

– Calculates tax based on specific project

criteria

– Automate exception handling for

intercompany tax


MCMC Improvements – Intercompany Team

Established Intercompany Processing Team

– Hired Intercompany Manager with two full-time staff

– Working with Treasury and Tax Team

– Responsible for running Intercompany Billing and

Gains & Losses

– Reconcile Intercompany Suspense, A/P, A/R

accounts

– Validate Intercompany Invoices

– Work with Treasury Team on Intercompany

Settlement Processing

– Work with Tax Team to make sure IC Tax is invoiced

and filed correctly

IC Team

TaxTreasury


Current Intercompany Billing Process


Lessons Learned

Use the right Functional Currency for each company

If possible use one exchange rate for conversion

Higher decimal precision in exchange rates means fewer rounding issues

More direct relationships with currencies (less inverse or triangulation) means fewer “crumbs”

Know local rules (China – separate entity for each office)

Talk to other users

Roll out intercompany subledger later


Wish List

Better multi language support for Asian languages – invoicing

Calendar year reporting

Fixed fee Intercompany Billing between entities

Better consolidated GL report

Standard functionality for project specific Intercompany tax (location based)

Please submit a survey for this session via the

mobile app.

20

Learn More

Get plugged in

• Join a user group (regional, virtual)

• Interact in Kona – Client Advisory Council

(CAC) and more! ([email protected])

• Join the MVP program

Visit the Vision kiosks in the Expo Hall

Follow the Vision Blog @ http://bit.ly/Vision_Blog

Attend a live VPM, CRM, Resource Planning,

demo or sign up for an upcoming webinar at

Deltek.com

mailto:[email protected]

http://bit.ly/Vision_Blog


Contact Information

Agung Zakaria

– [email protected]

Karen Scott


Mary Adamski (Intercompany Manager)


gensler multi company multi currency seven years later · – extracted tokyo (jpy), china (cny)...

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