supporting ifrs compliance for a major japanese chemical ......activation of the material ledger in...
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Supporting IFRS Compliance for a Major Japanese Chemical Company
Business SituationThe client is the system support arm of one of Japan’s largest chemical companies.
The ChallengeThe client wanted to modify its fiscal calendar to run from April-March — a shift that would align the company’s calendar with that of its parent organi-zation and its subsidiaries. This change would also comply with stipulations under the International Financial Reporting Standards (IFRS), which will be completely enforced in Japan by 2015.
The division intended to consolidate the SAP systems of three companies that operated under its business domain. It also wanted to change the configuration of the SAP system running in India to resolve some long-term operational issues.
Additionally, the client was looking to add a new instance for its integrated systems infrastructure and install the latest version of SAP’s Enhance-ment Package (EhP 5), as well as activate its new general ledger (GL).
The SolutionWe implemented the following to achieve the client’s objectives:
• Migration of the existing systems’ configura-tion to the consolidated systems (AS-IS).
• Consolidation of all three systems (India, Indonesia and Singapore) into a single SAP system — SAP ECC 6.0 EhP 5.
• Implementation of a new General Ledger (GL).
• Implementation of two depreciation areas for the Indian company code to comply with India’s depreciation and reporting rules (using one depreciation area to report to headquarters, another to report in U.S. dollars).
• Enablement of stock valuation using the moving average in U.S. dollars for raw material stock and spare parts — a task that was previously done manually.
• Activation of the material ledger in order to use the material valuation function at stock movement.
• Migration of data (open transactions) from the existing systems to the new consolidated system.
• Cognizant Case Study
cognizant case study | may 2014
About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 178,600 employees as of March 31, 2014, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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The Benefits
• The group companies will become IFRS-compliant.
• The integrated system can be used as a platform for the chemical company’s global SAP system to roll out to countries across the world.
• During implementation, we effectively delivered a business blueprint with sign-off documents, which helped our client create and maintain a repository for the regional instances.
• The detailed training document we delivered enabled our client to transfer knowledge with ease to its business users.
• Single-value maintenance across instances of cross-client objects helped the company execute functions globally.
• Our proprietary data migration tool, CtDMS, was widely leveraged during this engagement to achieve a lean development cycle.