Solver Helps SEACOM Improve its Planning and Budgeting Process–and Meet IFRS 15 Compliance.
SEACOM is a major Pan-African service provider offering a full suite of data services that allow Africa’s growing information and communications technology (ICT) community to develop and evolve. SEACOM provides flexible, scalable, and high-quality communication services that enable the growth of Africa’s economy.
“With Solver’s reporting, planning, and data warehouse tools, SEACOM was able to achieve a reliable and trusted plan that had the support of the business, and the flexibility to cater for various scenarios with the most up-to-date information.”
–Warren Wilbraham, Global Head of Finance at SEACOM
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THE CHALLENGE
SEACOM had many long-term contracts with customers that were impacted by their required compliance with the International Financial Reporting Standards (IFRS) to change their revenue recognition to the requirements of the new IFRS 15 Standard. With up to 50 percent of its revenue coming from these contracts, and around $300 million in deferred revenue in the balance sheet, SEACOM needed to have a robust, flexible system to meet their accounting requirements
THE SOLUTION
With a hard close implementation deadline in time for its annual budgeting board meeting, SEACOM leveraged Solver’s Planning and Data Warehouse solutions to deliver a high-quality, reliable annual performance plan. Solver’s Reporting, Planning, and Data Warehouse solutions will have a part in long-term sustainable savings in accounting and audit time.
Why did SEACOM need help developing a solution?
With the pending changes required by the IFRS, the Finance Team at SEACOM developed a functional specification for implementation in its ERP, Acumatica. However, progress was slow and there was often a disconnect between the company’s Finance and Development teams. With time rapidly running out and a revised analysis of the situation following the implementation of Solver’s data warehouse for its reporting and planning implementation, SEACOM decided to change tactics.
What were some of the more complicated issues?
SEACOM had several planning challenges, including delays due to manual work recreating inputs from the company’s payroll and billing system. This led to data that was prone to error, and as contracts were added, there was also risk that the revenue numbers would not be aligned with the numbers on the latest contract. There was also a problem using multiple spreadsheets in providing the budget inputs, including various formats with different versions that didn’t translate. SEACOM had a number of long term contracts, of up to 20 years, with customers who were impacted by this.
There were internal issues as well; what were some of these?
Changes made on spreadsheets did not always find their way to the Finance Team, causing mistrust, which in turn undermined the role the Finance Team played in monitoring and reporting on performances throughout the year.
THE RESULTS
How did Solver’s Reporting tool provide the solution you needed?
Due to the complexity of calculation and thin initial function specification, the development process was critical. Solver’s implementation team sat with SEACOM’s finance staff to rapidly develop the solution, and within 2 weeks, revenue recognition spreadsheets with the necessary control totals were developed using the Solver Reporting tool–and provided to the auditors as proof of the revenue. In addition, the deferred revenue balance could also be proven, ensuring a very accurate budget process. SEACOM is now able to calculate and process revenue entries from previous years within 2-3 hours per year compared to 4 hours each month.
How was the budget process improved?
Solver’s Planning software enabled SEACOM to have control over the budget process. Prior to the implementation, budgets could be opened, closed, and copied from one version to the next. With the solution, SEACOM was able to control the process and enforce deadlines, and actual and existing budgets were loaded for each company in local currency at line item detail level to ensure the full visibility of costs, all with the Acumatica ERP. This transparency immensely improved the level of trust in the process within the organization.
How was reporting improved?
With Solver’s Reporting solution, SEACOM could quickly assess performance against budgets and forecasts for the company, business unit, and cost centers in local currency and reporting currency. Exchange rates were loaded and flexed as required to assess different scenarios. This enabled SEACOM to implement the Solver solution in parallel with its annual planning cycle. SEACOM believes Solver reporting, planning and the data warehouse will have a part in long-term sustainable savings in accounting and audit time.
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