Top Finance Számviteli Szolgáltató Kft., a financial and accounting firm, provides services to MOL Group companies. Because MOL Group had spun off a number of newly-acquired SMEs into subsidiaries, it needed to implement a cost-effective, uniformly-managed system for enterprise resource planning (ERP) at its Shared Service Center; namely a solution to manage efficient, consistent reporting processes. With support from partner, VBS ERP Kft., Top Finance chose a scalable Microsoft Dynamics NAV to manage these processes. The new system, built without delay and with planned scalability for future ERP module add-ons, ensures standardized reports across all MOL Group subsidiaries and very short lead time for requesting new reports produced from centrally-managed data. Situation
Established in January 2007, Top Finance Számviteli Szolgáltató Kft. provides comprehensive financial and accounting services to MOL Group’s subsidiaries. It operates as MOL Group’s Shared Service Center from 5 business locations with a staff of 330 employees.
It also provides premium services to and performing transactional account operations for multiple companies. Its premium services include tax consulting and accounting that comply with Financial Reporting Standards.
|Following the implementation of Microsoft Dynamics NAV, organizations will redefine their business processes. The solution includes best practice knowledge that all employees need to use.|
| Mariann Marczona (Mrs. Minarik)|
Top Finance Számviteli Szolgáltató Kft.
The company completed its first Microsoft Dynamics NAV implementation in June 2007. Since that time, Top Finance Kft. has been using the new system to serve 16 companies. Its clients, for whom it provides both HUF- and foreign currency-based accounting services, include both Hungarian and foreign companies, which it handles in separate databases. Its first client to switch over from HUF- to euro-based accounting did so in January 2010, and another client is currently preparing to do so.
Although it has not experienced any traditional IT-related business problems, Top Finance Kft. uses a fairly large technical infrastructure. For example, it runs SAP to provide accounting and financial services to MOL Nyrt. and three other large business customers. This solution, however, would have been a costly overkill, had it been transferred to the SMEs that MOL continues to spin off as subsidiaries.
Therefore, Top Finance Kft. sought another system that could provide financial and accounting services for the new SMEs both flexibly and cost effectively. The objectives for implementing the new system were threefold: to establish consistent operations and a uniform financial controlling system, to provide transparent and up-to-date business systems for its subsidiaries and to operate these systems efficiently. The system’s international usability was also a critical factor, since our client base includes companies outside Hungary. Beyond that, the system also had to support the addition of enterprise resource planning functions.
It was important for the MOL Group that its subsidiaries use uniform business processes and implement uniform financial controlling and reporting. The newly spun-off subsidiaries needed to adopt a uniform methodology for their operations. These criteria are also important for management reporting and stock exchange compliance purposes. Of all the systems available on the market, Top Finance chose Microsoft’s Dynamics NAV. Solution
Top Finance Kft. provides its financial and accounting services to MOL Group’s newly created companies using the Microsoft Dynamics NAV solution. These companies implemented Microsoft Dynamics NAV both cost effectively and within a relatively short period of time. Implementation schedules depended on the complexity of operations, and were run so that services could be provided at short notice.
The Hub and Spoke Model
The hub and spoke model means that subsidiaries use the Center’s system as their primary ERP system. They use another supplementary system to support their daily operations. In the MOL Group, the primary system is SAP, which is supplemented by Microsoft Dynamics NAV at a number of subsidiaries.
Microsoft Dynamics NAV provides the MOL Group a uniform General Ledger interface, making the subsidiaries’ GL and financial processes and information more transparent. It also accelerates the consolidation process. This model was implemented over two business process cycles.
General Ledger and Consolidation
Consolidation is crucial for companies listed on the stock exchange, because they have to file consolidated reports every month. So, creating a NAV module for standardized consolidation became an early priority for the MOL Group.
This solution allows subsidiaries using the system to submit monthly reports to the parent company both fat and simply. The consolidation module supports a direct data link and direct monthly consolidated GL posting to the central SAP BI system. Naturally, this process works only if the subsidiaries’ GL accounting system is built to meet central guidelines.
The consolidation module prepared for the MOL Group supports users at the Hungarian home office as well, insofar as it includes both the posting of transactional data and the downloading of the requisite master data.
During the implementation phase, overseen by a consulting firm, the solution was supplemented with various enterprise resource planning functions, as needed. The initial solution had been running for two years, before the company discovered that the Microsoft Dynamics NAV systems had not been utilized optimally. So the company launched a redesign project for the review and modification of each implemented system.
“With Microsoft Dynamics NAV we introduced standard, uniform processes with standard metrics and financials reports,” said Mariann Marczona (Mrs. Minarik).
The implemented solution even impacted the processes of those companies that had not originally planned to reengineer their processes. Namely, Microsoft Dynamics NAV embodies best practice knowledge, useful for all companies. Processes became controllable, and so sources of error could be easily eliminated.
Following the implementation of the financial module, most subsidiaries wanted to supplement the solution with enterprise resource planning components. Microsoft Dynamics NAV allows them to do this immediately, because this functionality is integrated into the system. In addition to the flexible, scalable system design, the solution is also cost effective: an important consideration for SMEs.
“Because of the familiar Microsoft Windows environment, even those colleagues used to the logic of a different enterprise resource planning system had no difficulty learning to use Microsoft Dynamics NAV,” explains Mariann Marczona, Managing Director of Top Finance Kft. Benefits
Monthly financial and other reports are now standardized for all subsidiary companies. They permit staff at MOL Group, their owner, to compare the subsidiaries’ performance with ease. When a company asks for a new report, the Shared Service Center can meet this need with a short lead time, using the built-in functionalities of Microsoft Dynamics NAV.
The system is flexible and reporting capabilities are extensive, ensuring that new needs are met adequately.
The data of the Hungarian companies served by Shared Service Center are kept in a single central database that allows for the introduction of additional centralized services. One such centralized service is the management of master data. This means that data and options need only be modified once, at a single location, to make them effective for all companies.
“Relying on the experience we gained from various Microsoft Dynamics NAV implementation projects, we can build a working system at new companies with relatively short lead time. In fact, we have been able to deliver a working Microsoft Dynamics NAV system within a week,” says Mariann Marczona (Mrs. Minarik).
About VBS ERP Kft.
Established in 2000, VBS ERP offers end-to-end IT solutions, complete with software development, hardware support and system integration. In 2003 it was among the first to contract for the delivery of Microsoft Dynamics NAV (Navision) enterprise resource planning (ERP) systems.
VBS ERP provides comprehensive support in the following areas:
•supply chain management
•integrated vehicle sales
•medical appliances and aids
VBS ERP is also a leading provider of Customer Relationship Management (Microsoft Dynamics CRM) solutions. To support and extend its Microsoft Dynamics NAV (Navision) and CRM offering and to meet the broadest range of customer needs, the company has also built up a significant .NET based development capability. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.