Case Study

28% reduction in manual journal entry to improve controllership for a global beverage enterprise

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Client: A leading multinational brewing and beverage company with operations in 75 countries

Industry: Consumer goods

Business need addressed: Reduce manual effort and process handoffs to improve controllership and process efficiency

Genpact solution: Process improvement based on redesign, automation, and standardization

Business impact:

  • Greater controllership
  • Smooth closure of books of account
  • Higher productivity

A multinational brewery and beverage company with operations in 75 countries was struggling with sub-optimal processes that were highly manual, which was causing inefficiencies and led to controllership issues in the record to report (R2R) process. It also faced a significant risk of delayed closure of books of account due to the high number of manual journal entries concentrated at each month end. Genpact implemented an R2R solution based on automation, point IT solutions, process fixes, and policy changes that resulted in a substantial reduction in the required effort and handoffs, with an approximate 28% decrease in manual journal entries.

Business challenge

The company’s R2R process required a high degree of manual intervention. Genpact identified the underlying issues by conducting current-state value stream mapping, and helped the client design the future-state process. A number of key issues were identified:

  • Upstream process defects, which resulted in a high number of reclassified journals and rework
  • A lack of process automation and the underutilization of ERP functionality, which resulted in labor-intensive processes
  • The absence of a robust policy to support enterprise-wide standardization and the rationalization of recharged/reclassified documents

Genpact conducted value stream mapping to identify the different types of manual journal entries and their impact, and then implemented process redesign, automation, and standardization with well-defined targets.

  • Developed standard formats to link to the existing ERP system
  • Automated reversals for transaction codes in SAP entries (where possible)
  • Instituted a standard reporting format to eliminate incorrect classification of general ledger codes
  • Introduced a standard weekly review mechanism
  • Introduced threshold limits for reclassified journal entries
  • Established benchmarks for routine journal entry backups
  • Built structured templates for reallocation
  • Developed standard reports for all regions

Business impact delivered

  • Greater controllership through “first time right” journal entries
  • 28% reduction in manual journal entries at month end, enabling the smooth closure of books of account
  • 10% reduction in the manual effort

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