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SAP system to revolutionise Denel reporting

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Pretoria-based SAP services specialist Satreno has been awarded a major
contract by state-owned defence equipment manufacturer Denel to consolidate
and streamline its administration processes and install an integrated
financial reporting system.

At the heart of the assignment, which is likely to take around 18 months and
involve up to ten Satreno staff, is Denel's requirement for a more efficient
financial consolidation process, resulting in more time for analysis and the
effective execution of strategies.
Another important requirement is for aggregated reporting across the group's
functional entities including human resources, procurement, counter-trade,
business development, finance, risk management and treasury.
According to Satreno's Elza le Roux, there is a need for information from
multiple general ledgers and charts of accounts, residing on various source
systems such as SAP, QMuzik, Accpac and System21 to be aggregated and
consolidated onto a single platform.
In addition, it is envisaged that the new system will enable the corporate
finance department to automate repetitive tasks, eliminating a substantial
amount of clerical activity.
The main product and methodology being employed on the project is SAP BI
(Business Intelligence), including SEM BCS.
"Many of the current systems and processes being used are manual. The new
system will feature a much higher level of automation, but will require IT
and business process changes at various levels," says le Roux.
Major benefits that Denel is expected to enjoy from the new system include:
* Data integrity – one version of the truth across all functions and
entities within the Denel group
* Internal data availability  – all authorized personnel will have access to
the same data
* Data availability for external auditors with a full audit trail of any
adjustments
* A much speedier consolidation process – the goal is to have this completed
by the 4th day after close-off
* Identical processes for year-end, month-end, budgets and forecasts
* Various levels of pre-validation before data is loaded into the new system
* Formal reporting on inter-company and inter-entity differences before data
is loaded into the system
* SAP will provide the platform for future business intelligence initiatives
such as strategy management and performance measurement
* Sharing of the same system/database across entities enabling a uniform
platform and standards for future business intelligence implementations.
Significantly, the new system will have a new and more transparent
inter-group clearing facility, enabling a range of pre-validations to take
place. External auditors will also be able to place more reliance on the new
consolidation system and data, a benefit that could result in reduced audit
fees.