Kobe Aluminum Learn how Kobe Aluminum has trimmed out monthend close processes from 45 days to 3 days Come hear how they are leveraging QAD software to support monthend close business processes which results in large efficiency gains The presenters will discuss the challenges processes a ID: 567668
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Month-End Close Optimization Kobe Aluminum
Learn how Kobe Aluminum has trimmed out month-end close processes from 45 days to 3 days. Come hear how they are leveraging QAD software to support month-end close business processes, which results in large efficiency gains. The presenters will discuss the challenges, processes and tools that have allowed Kobe to achieve these results. Slide2
FocusConcepts
Materiality
Process
Speed
Automation
AnalysisSlide3
ConceptsWhy is month end close important?
PDCA
Standard Work
7 HabitsSlide4
Plan–Do–Check–Act PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used in business for the control and continuous improvement of processes and products.
It
is also known as the Deming circle/cycle/wheel,
Shewhart
cycle, control circle/cycle, or plan–do–study–act (PDSA). Slide5
Standard Work
By
documenting the current best practice, standardized work forms the baseline for
continuous improvement (kaizen).
As
the standard is improved, the new standard becomes the baseline for further improvements, and so on. Improving standardized work is a never-ending process.
Basically
, standardized work consists of three elements:
Takt
time, which is the rate at which products must be made in a process to meet customer demand
.
The
precise work sequence in which an operator performs tasks within
takt
time.
The
standard inventory, including units in machines, required to keep the process operating
smoothly.Slide6
The Seven Habits of Highly Effective People
Be Proactive
Begin with the End in Mind
Put First Things First
Think Win-Win
Seek First to Understand, Then to be Understood
Synergize
Sharpen the SawSlide7
MaterialityDetermine your materiality level for booking
month end adjustments
Non-Standard Adjustment slow your close down. Slide8
ProcessDocument Your Day 1 through Day X closing activities.
Maintain
your closing checklist
Calendar
Maintenance
Journal Entry List
Journal Entry Sequence
Journal Entry Owner
Require Accountants to Load Journal
Entries.
Accountants to Update Checklist when task are complete.
Identify Non-Accounting Tasks impacting close. Slide9
Automation: Validate Interfaces
Are Interfaces working?
Do interfaces generate load errors?
Typical Interfaces
Payroll
Concur
P-Card
Freight BillsSlide10
Standard Close Sequence
Run Operational Programs as close to month end as possible:
Work Order Accounting Close
Post Accumulated Variances
Cumulative Order Close
Manage / Maintain GL Calendar for Month End Cut-Off.
Close Sub Modules ASAP
Does AP/AR Need to be Open After
Month End?
No - Book
Reversing Accrual Entries
Book Standard Entries
Prepaid
Accruals
Loan
Amortization
DepreciationSlide11
Standard Close Sequence (Continued)
4. Book Standard Entries Continued
Run GL Interfaces Related
to previous Month.
Analyze Results
Trial
Balance Review
GL
RW Review -
This month last month Comparison.
This month to Budget Comparison.
YTD actual
to YTD Budget Comparison.
6. Adjust Financial Transaction Errors with GL Reversing Entries.
Require
submodule transactions errors are corrected in subsequent period. Slide12
Standard Close Sequence (Concluded)
Complete FX Revaluation.
Close the Calendar for the General Ledger. Slide13
QAD Closing Process Map