Background

Today’s digital economy is characterized by a constant increase in demand for immediate access to accurate financial data. Internal management, parent companies, regulatory authorities, and other external stakeholders now expect almost real-time availability of accounting statements and management information. However, divergent accounting standards, currency complications, overseas jurisdiction needs, and even multiple accounting systems often hinder the effectiveness of many finance professionals.

Constantly evolving global financial compliance requirements pose challenges for many ERP-products, which excel at line-of-business operations and have solid core accounting. They are increasingly seeking specialist partner solutions, particularly in areas such as tax and financial reporting, to provide local controllers with the tools needed to respond appropriately.

Challenge

In distributed corporations, global controllers regularly consolidate data from multiple ERP-systems, navigate different chart of accounts structures, and manage multiple currencies. Their responsibility involves supporting the decision-making needs of internal management while creating GAAP-* and IFRS-compliant** consolidated financial statements for external audiences such as auditors, banks, investors, and analysts.

Individual company accountants also must balance internal management reporting formats with frequently conflicting disclosure requirements of local authorities. As national governments in a growing number of countries aim to protect revenue sources and expose fraudulent activity, they have created additional burdens by mandating electronic tracking of individual transactions and demanding almost real-time electronic report submission.

Solution

Mondial Software offers a web-based subscription service called Mondial CRx, which assists customers in transitioning from traditional reporting to meet the contemporary demands for immediacy and accuracy at all levels.

Mondial CRx performs the consolidation of transaction-level data—General Ledger, Accounts Payable, and Accounts Receivable—from each ERP-system globally. It aggregates this information into its multi-ledger accounting repository, providing immediate access to data from every group operation in a consistent and easily understandable manner.

The repository undergoes enhancements through transaction-level currency adjustments and the generation of final adjustment journals, such as revaluations, adjustments, and reallocations, particularly when achieving these tasks within the underlying systems is challenging. This characteristic enables Mondial CRx to function as a true system-of-record, reducing audit risk compared to ERP systems requiring supplementary spreadsheet adjustments or Business Intelligence products that rely solely on balance-level data for financial reports.

Automated mapping of accounting data from diverse source charts of accounts to either common group standards or formats mandated by regulatory authorities ensures that the data is consistently prepared for easy and uniform reporting.

Moreover, the entire accounting dataset serves broader decision support by integrating with industry-standard analytical and business intelligence tools. This integration ensures consistency in information used across the enterprise, establishing a single source-of-truth.