“I’d have to hurt somebody if I had to go back to the way we did it before”
– Company’s Main Power User

Using Orchid’s Inter Entity Tools to take a one-day process down to one hour

The time savings for this customer was in taking an inter-company journal entry process from one day per month to 1 hour per month.

This case study focuses on a customer that is growing rapidly through acquisition and has an increasing need for generating inter-company transactions. This customer expects to double in size in the next 2 years, so inter-company transactions are critical to ensuring the books are balanced. The customer worked with DataQuest to implement Orchid Inter Entity tools to streamline the process of generating complex balancing entries.

About the Inter Entity Transactions Tool

The Inter Entity Transactions tool makes it easier to manage allocations and transfers between entities. Entities equate to segments in the General Ledger, and may include branches, divisions, departments, funds, projects, trusts or multiple companies held within one or across multiple databases.

Before – the Challenge : One Full Day/Month

Prior to using Inter Entity, our customer had to manually create multiple journal entries as well as each inter-company transaction. The process was error-prone and tedious. It would take a full day to reconcile all the balances at month end, because of the time involved in creating correcting journal entries each month.

After – the Result : Just One Hour/Month

Now, in most cases, the customer is in balance each month without much additional effort. There are far fewer user errors to correct due to the behavior of the Inter Entity tool. Given that each person with a credit card can generate around 50 transactions monthly, allocating these transactions correctly is an incredibly valuable service.

An added value is that the system actually adds more detail to the inter-company entries. Prior to using Inter Entity, the customer would just create a summary entry. With the added value of the Inter Entity tool adding detail lines, the balance can be checked quickly by summing detail lines to ensure they match the figure against which to reconcile. It is a much easier job to do, even though there are more lines.

The tool also handles 30 standard repeating journal entries that are needed each month. These used to be done manually. Now, the customer simply populates a template and uploads a journal entry. The data are consistent, the monthly reconciliation is straightforward, and nobody needs to get hurt.

DataQuest

Orchid Systems has also written about this case study.