Not for Profit
Dated financials system
Oracle ERP CloudTHE SITUATION
National Elevator Industry Benefit Plans (NEI), an independent non-profit with over $12 billion in assets under management, was using a dated financials system that had minimal automation and extensive workarounds for transaction processing and reporting. NEI desired to move to a state-of-the-art ERP system to improve the productivity of their work-force and provide greater ability to analyze and report on their financial data.
NEI knew its long-standing financial system was no longer meeting its needs. Generating reports and reconciling data was time-consuming, and by the time the reports were reconciled, they were no longer current. The organization wanted to create a new chart of accounts based on industry-leading practices that would allow it to make process improvements, drive accountability, and support better decision-making through dynamic reporting. The organization also aspired to reduce maintenance and minimize disaster recovery risks through a SaaS (software-as-a-service) model.
WHAT THE TEAM DID
Grant Thornton LLP led NEI through the process of designing a new chart of accounts. This new chart of accounts was intended to support the current business and provide a foundation for growth and evolution in the future. Following the finalization of the new chart of accounts, Grant Thornton led the client through a discovery phase to ensure we understood their business requirements and then moved into design, configuration, and testing. In under 5 months, the implementation was completed and was successfully processing financial transactions in the system.
NEI has achieved significant operational efficiencies and improved data accuracy through the implementation of the integrated Oracle platforms.
The implementation of the ERP platform for general ledger (GL), accounts payable (AP) and fixed assets (FA), has led to greater automation, efficiency and accuracy.
- NEI has reduced the manual effort and increased the visibility into the two different Fiscal Years that they manage across their 7 legal entities.
- Financial statement preparation time has been reduced 50% by simplifying the consolidation process and reducing company-specific financial statements.
- New reports — technically impossible with its legacy system — have been created and are being used every day.
- An electronic workflow has been set up in AP, where NEI previously used a paper trail.
- Staff are able to track the status of AP invoices in real time as they move through the configured workflow.
- The automation of NEI’s AP approval process has provided greater control, visibility, and enhanced the efficiency of involved staff.
- Bank account reconciliation processes have been reduced by 50% by replacing a manual entry spreadsheet with a highly automated reconciliation and cash entry generation process.
- The asset maintenance life cycle has been reduced by 60% through integration and enhanced categorization. A fully integrated process starts with AP and extends until final entries are posted to the ledger.
- Realized financial reporting lifts from easier report creation, changes, and delivery without the need to involve IT.
- Automated intercompany transactions have eliminated manual intercompany journals and the tedious reconciliation effort that accompanied them each month.
- Shortened close cycle.
- Improved journal entry preparation, approval, and archiving.
- Oracle workflow has reduced the lag time for transactions and decisions requiring approval. In the past, transactions could sit with one person for notification purposes — not approval — for days before moving on to the next person. The new system also has delegation rules, thereby ensuring the process does not get delayed when a decision-maker is unavailable.
As a result of NEI’s new platform, operations are moving faster, and reports and manual tasks are completed in a fraction of the time. Decisionmakers have better insight and real-time access to their data across finance and accounting and the data is reliable and valid. The new cloud-based ERP solution makes NEI a more streamlined, efficient, nimble, and modern organization.
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