KNI optimize budgeting and reporting with Toolpack best practice
KNI A/S formerly known as The Royal Greenland Trade Company, has a history dating all the way back to it’s founding in 1774. Back then, the aim was to supply the people in more remote and less commercialized parts of Greenland with groceries. This remains one of the most important tasks at KNI, which today operates on the basis of modern business principles. That is precisely why Toolpack is an integral part of the economic section – to ensure that everything from budgeting to annual reporting is done quickly, smoothly and securely.
Furthermore there are also good economic aspects in Toolpack’s tools - they are so efficient that they have earned themselves back several times already...
In 2007, KNI acquired Toolpack’s budget tool that quickly led to a yearly saving of approximately 10 man-weeks on budget mechanics alone because the Toolpack solution collects accounts and realized figures directly in KNI's ERP system, and then the sub-budgets are sent to budget holders. All without any extra typing!
Following the successful start, the budget section has become even more detailed, and due to the great satisfaction with the system, KNI has taken several other tools in use so that today, internal reporting, external reporting, cash management, and budgeting are also facilitated by Toolpack.
From budget to reporting
Toolpack is still used extensively in the budget phase, when budget models are built and sent to budget holders. This way all budget holders in the company's various business units receive economic schematic plans for budget preparation, which are subsequently returned to and consolidated in the company's finance department. This process takes place both in the Parent and the Company's subsidiaries.
- In addition to the budget section, we have also greatly benefited from the reporting portion, says Per Jensen, chief accountant at KNI.
- We use the management's report as an internal tool and Toolpack’s other reporting tools in addition hereto - for instance the annual report in relation to our external reporting and liquidity module for controlling and monitoring the company's cash flow, he says.
The annual report is constructed exactly as KNI wants it to be, and it is based off the same principles in that it retrieves data directly from the ERP system and transfers it to the reporting tool.
Seamless management reporting
Management reporting is used mainly for internal reporting and internal follow-up within the business units and staffs. Once a month, at the touch of a button, the management report is filed. Each budget manager receives a monthly report, by use of which he can follow up on last year’s actual, budgeted figures. In addition, budget managers also receive Toolpack’s reporting tool, the interim report.
The interim report - from internal to external reporting
- We use the interim report each month in order to turn the internal reporting into an external reporting, says Per Jensen in praise of the tool’s graphical capabilities in presenting data and results in a clear manner.
Per Jensen is greatly pleased with the tool’s ability to display information through virtually any forms of graphical representation, precisely because it is all Excel-based.
- It’s a very flexible tool, he says.
Easy graphical presentations
- We can customize reports into exactly what we want them to look like - and it is all done very simply and flexibly. So if you are used to using Excel, this creates a different dynamic than what you’d attain by using your standard ERP system presentation options.
In addition hereto, it saves tremendous amounts of time in relation to the debriefing as you do not have to sit down and type a lot of numbers, which by the way, is a great opportunity to make mistakes, because it moves data directly from our ERP system into the reporting package in Toolpack, says the chief accountant.
The tools are already recouped
- Toolpack’s tools help us save a lot of man-weeks because we get all reporting back in a consistent type of predefined form that we can analyze, and then see the consequences of, very quickly. It saves a lot of time for the participants in the budget process and the subsequent reporting – and it’s for the benefit of the entire organization that we use it. They get a tool that is relatively easy to operate and highly structured, concludes Per Jensen.